The government has announced a reduction in fuel prices by up to Rs5 per litre, effective February 16, 2025.
The price of high-speed diesel (HSD), widely used in agriculture and transportation, has been cut by Rs4 per litre, bringing it down to Rs263.95 from its previous Rs267.95 per litre.
Similarly, the price of petrol has been reduced by Rs1 per litre, setting the new rate at Rs256.13 per litre.
Additionally, the prices of kerosene and light diesel have been lowered by up to Rs5 per litre. Kerosene will now be available at Rs171.65 per litre, while light diesel will cost Rs155.81 per litre.
According to the finance ministry, the Oil & Gas Regulatory Authority (OGRA) reviewed and adjusted consumer prices in response to fluctuations in the international oil market. The new rates will remain in effect for the next fortnight.
Earlier reports suggested that diesel prices were expected to decline by Rs9.11 per litre, influenced by global oil price trends.
Since Pakistan imports petroleum products, local prices are adjusted based on global market movements. These calculations also take into account tax rates and the inland freight equalization margin, without considering rupee-dollar exchange rate adjustments.
Currently, the government imposes a petroleum levy of Rs60 per litre on petrol and high-speed diesel. While this levy was originally intended for oil sector development, such as infrastructure and storage facilities, the revenue has instead been used for general expenditures.
