Diesel Price Drops by Rs12.84 as Petrol Rate Remains Unchanged in Pakistan

The federal government has announced a significant reduction in diesel prices, bringing relief to the transport and agriculture sectors. According to the Finance Division, the price of high-speed diesel (HSD) has been slashed by Rs12.84 per litre, setting the new rate at Rs272.99. Meanwhile, the petrol price remains unchanged at Rs264.61 per litre.

High-speed diesel is widely used in trucks, buses, trains, tractors, tube-wells, and threshers, making it a crucial factor in Pakistan’s inflationary trends. A reduction in diesel costs is expected to ease transport fares, agricultural expenses, and food prices, particularly vegetables and other essential commodities.

Petrol, on the other hand, is primarily consumed by private cars, motorcycles, and rickshaws, directly impacting middle- and lower-middle-income households. While its rate has not changed, stability in petrol prices brings some predictability for everyday consumers.

The Finance Division also confirmed cuts in other petroleum products:

• Kerosene oil reduced by Rs7.19 per litre.
• Light diesel oil reduced by Rs8.20 per litre.

The revision comes in line with recommendations from the Oil and Gas Regulatory Authority (OGRA), considering international oil price movements and exchange rate fluctuations.

During the past fortnight, international diesel prices dropped by around $4.5 per barrel, while petrol rose slightly by 15 cents per barrel. A minor appreciation of the Pakistani rupee against the US dollar also helped in easing diesel prices domestically.

Earlier on July 31, 2025, Prime Minister Shehbaz Sharif had approved cuts in petrol and diesel prices, slashing petrol by Rs6.17 and diesel by Rs10.86 per litre. The current reduction continues the trend of providing relief against global oil market volatility.

Economists believe the diesel price reduction will support agriculture, logistics, and public transport, potentially reducing the burden of food inflation. However, unchanged petrol rates mean urban commuters will still feel the pressure on household budgets.