ISLAMABAD: Pakistan’s federal government on Saturday announced a reduction in petrol and diesel prices for the next fortnight, effective from February 16, 2025, in accordance with recent trends in the international oil market.
According to a notification issued by the Ministry of Finance, the price of petrol has been reduced by PKR 1 per litre, bringing it down to PKR 256.13 from the previous PKR 257.13.
Similarly, the price of high-speed diesel (HSD) has been slashed by PKR 4 per litre, reducing it to PKR 263.95 from PKR 267.95.
The Finance Division stated that the Oil & Gas Regulatory Authority (OGRA) reviewed and adjusted petroleum product prices in line with the latest fluctuations in global oil prices.
In addition to petrol and diesel, the prices of other petroleum products have also been adjusted downward. Kerosene oil will now be available at PKR 171.65 per litre, reflecting a decrease of PKR 3.20 from PKR 174.85.
Light-diesel oil has seen the steepest reduction of PKR 5.25, bringing its new price to PKR 155.81 from PKR 161.06 per litre.
https://twitter.com/Financegovpk/status/1890833616059396354
The new prices will come into effect at midnight on February 16, 2025.
Impact on consumers
Petrol remains the primary fuel for private transport, motorcycles, rickshaws, and small vehicles. The middle and lower-middle classes are particularly affected by fuel price fluctuations, as petrol accounts for a significant share of their commuting expenses.
Meanwhile, high-speed diesel (HSD) plays a crucial role in the country’s transportation and agriculture sectors. It is widely used in heavy goods transport vehicles, buses, trains, and agricultural machinery such as tractors, tube wells, and threshers.
Any fluctuation in its price tends to impact the cost of transporting essential goods, particularly vegetables and food items, thereby influencing overall inflation.
Global oil market trends
The downward revision in fuel prices comes amid a dip in international crude oil prices. On Friday, Brent crude settled at $74.74 per barrel, recording a slight decline of $0.28 (0.37%), while US West Texas Intermediate (WTI) crude fell by $0.55 (0.77%) to $70.74 per barrel.
Market analysts attribute this decline to positive developments in potential peace negotiations between Russia and Ukraine, which could lead to a reduction in sanctions on Russian oil exports and stabilise global supply.
However, the decline was limited due to uncertainty regarding US reciprocal tariffs on energy imports.
Domestically, Pakistan continues to adjust petroleum levies to manage fiscal pressures. In the current financial year, the federal government increased the maximum petroleum levy from PKR 60 to PKR 70 per litre, aiming to collect PKR 1.28 trillion in revenue—PKR 150 billion more than the previous year’s collection of PKR 1.019 trillion. The revised levy surpasses the original budget target of PKR 869 billion.
