Petroleum Prices in Pakistan Likely to Drop by Up to Rs12 per Litre from December 16

Proposed Fuel Price Reductions

Under the proposed revision:

• Petrol is expected to become cheaper by 36 paisas per litre

• High-speed diesel (HSD) may see a substantial cut of Rs11.85 per litre

• Kerosene oil is likely to drop by Rs11.70 per litre

• Light diesel oil (LDO) may be reduced by Rs10.01 per litre

Expected New Fuel Prices

If the proposal is approved, the revised fuel prices would be:

• Petrol: Rs263.09 per litre

• High-speed diesel: Rs267.80 per litre

• Kerosene oil: Rs181.16 per litre

• Light diesel oil: Rs153.76 per litre

Approval Process and Notification

The Oil and Gas Regulatory Authority (OGRA) is scheduled to submit a summary of the proposed price cuts to the federal government on December 15. Following approval by the prime minister, the Petroleum Division will issue an official notification.

Relief for Consumers

The anticipated reduction in fuel prices is expected to provide much-needed relief to consumers amid rising inflation and increasing living costs across the country.

Previous Fuel Price Adjustment

Earlier, on November 30, the government reduced petroleum prices by up to Rs4.79 per litre for the fortnight ending December 15. According to a notification issued by the Petroleum Division:

• Petrol was reduced by Rs2, bringing the price to Rs263.45 per litre

• High-speed diesel was cut by Rs4.79, lowering the price to Rs279.65 per litre

Economic Impact

High-speed diesel is widely used in the transport and agriculture sectors, making any reduction particularly impactful for the broader economy. Petrol, primarily consumed by motorbikes and cars, sees higher usage in Punjab, especially due to restrictions on the use of indigenous gas at CNG stations.