In a welcome move for inflation-stricken consumers, Pakistan is likely to see a massive reduction in fuel prices from April 16, 2025, as global crude oil prices continue to fall.
According to official sources, the government is considering a Rs12 per litre cut in petrol and diesel prices to provide relief to the public.
If approved, petrol prices will fall from the current Rs254.63 to approximately Rs242 per litre, while high-speed diesel (HSD) could fall from Rs258.64 to Rs250 per litre. This move is on the back of a steep fall in international oil prices, with Brent crude having fallen from $74.95 to $60.12 per barrel over recent weeks—a $14 decline on the back of weakening global demand and economic uncertainty.
Finance Minister Muhammad Aurangzeb confirmed that the Prime Minister is expected to announce further relief in the coming months. He highlighted that the inflation rate is declining, the interest rate has come down from 22% to 12%, and the policy rate is helping stabilise the business environment. He also cited the success of the Minerals Investment Forum as proof of the country’s correct economic direction.
The government, however, is balancing this public relief with its international commitments. Under the $1.3 billion Resilience and Sustainability Facility with the IMF, a Rs 5 per litre carbon levy is expected to be implemented from July 1.
Currently, the government is imposing Rs 86 per litre in different taxes and margins on petrol and diesel. While GST is zero, the Rs 70 petroleum development levy, Rs 16 customs duty, and Rs 17 sale and distribution margin are added to the price.
Sources from the Oil and Gas Regulatory Authority (OGRA) have estimated a Rs10 per litre drop in petrol and Rs9 in diesel, with the final figures to be calculated by April 15 and implemented from midnight, April 16, pending approval by the Ministry of Finance and the Prime Minister’s Office.
This anticipated price reduction will particularly benefit the transport and commodity segments, providing relief to the common man. Yet, certain authorities caution that deep reductions could lead to heightened demand, and refineries are also requesting the imposition of GST on petroleum products so that they can stay profitable.
