Diesel falls by Rs12.8, petrol price stays steady
ISLAMABAD: The government has announced a reduction of Rs12.84 in the price of high-speed diesel (HSD) for the current fortnight, while keeping petrol prices unchanged, effective immediately until Aug 31, due to fluctuations in the international market.
In a late-night announcement on Friday, the Ministry of Finance said that the decision follows a review of international market trends and recommendations from the Oil and Gas Regulatory Authority (Ogra) and other relevant ministries.
The ex-depot price of HSD has been decreased by Rs12.84 per litre (4.5 per cent) to Rs272.99 for the next fortnight, down from Rs285.83 per litre. This price reduction follows a series of increases, with HSD prices rising by Rs29.5 per litre over the past five quarters.
HSD is predominantly used in the transport sector, especially in heavy vehicles, trains and agricultural machinery such as trucks, buses, tractors, tube-wells and threshers. An increase in its price is seen as inflationary, impacting the cost of transporting goods, including vegetables and other essentials, which has led to fare hikes by transporters.
The ex-depot price of petrol remains unchanged at Rs264.61 per litre.
Petrol is mainly used in private transport, small vehicles, rickshaws and two-wheelers, directly affecting the budgets of the middle and lower-middle class. Over the past two months, petrol prices had risen by Rs20 per litre.
Sources said that the international price of petrol rose by 15 US cents per barrel over the last fortnight, a minor adjustment included in the freight equalisation margin to avoid a price increase. In contrast, diesel dropped by about $4.5 per barrel, while the exchange rate slightly favoured the Pakistani rupee, and import premiums remained stable.
On the other hand, kerosene and light diesel oil (LDO) rates were reduced by about Rs7.19 and Rs8.20 per litre, respectively. Kerosene’s price dropped by 3.87pc to Rs178.27 per litre, while LDO saw a 4.85pc decrease, priced at Rs162.37 per litre.
The government currently imposes Rs95 per litre in taxes on both petrol and diesel. Despite the general sales tax (GST) being zero on petroleum products, the government charges Rs77.01 per litre on diesel and Rs78.02 per litre on petrol and high-octane products, which includes the petrol levy and climate support levy (CSL) of Rs2.25 per litre.
The government also charges about Rs16-17 per litre in custom duties on both petrol and HSD, regardless of their local production or import status. Additionally, oil companies and dealers receive Rs17 per litre for distribution and sale margins.
Petrol and HSD are significant revenue generators, with monthly sales of around 700,000 to 800,000 tonnes, compared to just 10,000 tonnes per month for kerosene.
For fiscal year 2025, the government collected Rs1.161 trillion through petroleum levy alone and expects this to jump by about 27pc to Rs1.47 trillion in the current fiscal year.
Hike in RLNG price
Meanwhile, Oil and Gas Regulatory Authority (Ogra) has announced a 1.3-1.5 per cent increase in the price of Regasified Liquefied Natural Gas (RLNG) for sales at the transmission stage by the two Sui gas companies for the current month.
Karachi-based Sui Southern Gas Company Limited (SSGCL), which serves Sindh and Balochistan, saw a decrease in its system losses at the distribution stage, dropping from 16.16pc to 10.6pc.
Meanwhile, Lahore-based Sui Northern Gas Pipelines Limited (SNGPL), which provides gas to Punjab and KP, reduced its system losses at the distribution stage to 7.47pc, down from 8.6pc in February this year.
The notification said RLNG’s sale price for SNGPL at transmission stage has been increased by 1.32pc to $10.98 per million British thermal units (mmBtu) for August against $10.834 in July. The sale price at distribution stage for SNGPL was raised by 1.33pc to $11.73 per mmBtu for the current month against $11.58 per mmBtu in July.
On the other side, the RLNG sale price for SSGCL has also been increased at transmission stage by 1.46pc to $9.61 per mmBtu for August against $9.47 for July. The sale price at distribution stage for the company was also increased by 1.46pc to $10.73 per mmBtu from $10.57 last month. Ogra said the increase in RLNG price was due to increase in delivered ex-ship (DES) price for August.
Published in Dawn, August 16th, 2025