20 Dec 2025, Sat

Government Considering Modest Fuel Price Reduction After Rs. 20/L Rise Since June

Fuel price reduction

In a development by the federal government, Pakistani commuters may soon will observe fuel price reduction (in petrol+diesel), reversing part of the steep hike witnessed over the past two months. The expected move comes ahead of the fortnightly petroleum price review, with financial experts suggesting the government has room to cut petrol by Rs. 6.82 per liter and high-speed diesel (HSD) by Rs. 1.68 per liter.

📉 Petrol & Diesel Price Forecast

According to a report by Arif Habib Limited (AHL) — one of Pakistan’s top brokerage firms — current market dynamics indicate the possibility of a slight fuel price relief in the next pricing cycle. If implemented, the new estimated prices could be:

  • Petrol: Rs. 265.33 per liter (down from Rs. 272.15)
  • High-Speed Diesel (HSD): Rs. 282.67 per liter (down from Rs. 284.35)

📅 Price Hike Timeline: From June 1 to July 28

Fuel prices in Pakistan have seen multiple upward adjustments since June 1, 2025, driven by international oil trends and domestic taxation policies. On June 1:

  • Petrol was priced at: Rs. 253.63/liter
  • Diesel was priced at: Rs. 254.64/liter

Fast forward to today, petrol has risen by Rs. 18.52 per liter, reaching Rs. 272.15/liter, while diesel has climbed to Rs. 284.35/liter — an increase of Rs. 29.71/liter.

🔍 Why the Government Might Cut Prices Now

Several factors have aligned to create room for a small rollback:

  • Stabilization in international crude oil prices
  • Slight appreciation of the Pakistani rupee
  • Mounting public pressure amid rising inflation

Experts believe that even a small reduction in fuel prices would offer psychological and financial relief to citizens already burdened by soaring utility costs, food inflation, and transport expenses.

🚦Impact on Daily Life

Here’s what a petrol price cut means for you:

✅ Lower transport fares
✅ Reduced delivery costs
✅ Slight decrease in inflationary pressure
✅ Improved public sentiment

🔮 What to Expect Next

The next OGRA (Oil & Gas Regulatory Authority) review is expected within days. If approved by the Ministry of Finance, the new prices will take effect from August 1, 2025. While the reduction may be minor, it symbolizes a policy shift aimed at consumer relief ahead of Eid and the school season.

📢 While the government is only planning a slight reduction for now, it marks a hopeful turn for Pakistani consumers. With oil price fluctuations continuing globally, staying informed on bi-monthly fuel updates is essential.

Stay connected to PakBrief Home for timely updates on fuel prices, economic trends, and national developments.

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