As of December 17, 2025, Pakistanis are waking up to some welcome news at the fuel pumps. The federal government has slashed the price of high-speed diesel by a substantial Rs 14 per litre, offering relief to truckers, farmers, and the transport sector. Meanwhile, petrol prices remain unchanged, providing stability for private vehicle owners amid ongoing global oil fluctuations.
This fortnightly adjustment, announced late on December 15, reflects a partial pass-through of declining international diesel prices while maintaining fiscal discipline through high petroleum levies.
Key Price Updates (Effective December 16–31, 2025)
- Petrol: Unchanged at Rs 263.45 per litre
- High-Speed Diesel (HSD): Reduced by Rs 14 to Rs 265.65 per litre
- Kerosene Oil: Cut by approximately Rs 12.32 per litre
- Light Diesel Oil: Minor adjustments reported
These changes aim to balance consumer relief with the government’s revenue needs.
Detailed Price Breakdown
Here’s a clear comparison of the latest prices:
| Petroleum Product | Previous Price (Rs/litre) | New Price (Rs/litre) | Change (Rs/litre) |
|---|---|---|---|
| Petrol (Motor Gasoline) | 263.45 | 263.45 | 0 |
| High-Speed Diesel (HSD) | 279.65 | 265.65 | -14 |
| Kerosene Oil | ~178 (varied) | ~165.68 | -12.32 (approx.) |
| Light Diesel Oil (LDO) | ~160 | Minor reduction | Varies |
These figures are based on official notifications from the Petroleum Division.
Reasons Behind the Adjustments
The Oil and Gas Regulatory Authority (OGRA) calculates prices every 15 days using:
- International benchmarks (Platts Singapore indexes for Arab Gulf products)
- Exchange rate fluctuations (PKR vs USD)
- Inland freight equalization margins
- Fixed taxes and levies
This time, diesel saw a sharper drop globally compared to petrol, allowing for a bigger cut. The government continues to impose high petroleum development levies—around Rs 82 on petrol and Rs 78 on diesel—to meet IMF-related fiscal targets, which limited broader reductions.
Earlier expectations suggested cuts of up to Rs 12 across products, but the final decision prioritized diesel due to its wider economic role.
Economic and Everyday Impact
Positive for Transport and Agriculture: The Rs 14 diesel reduction is a boon for heavy vehicles, buses, trucks, and farm machinery. Lower freight costs could ease pressure on food prices and goods transportation, indirectly benefiting consumers.
Mixed for Private Users: Petrol stability means no extra burden for car and motorcycle owners, who form a large segment of urban commuters.
Broader Context: Fuel prices significantly influence inflation in Pakistan. With diesel powering much of the economy, this cut may help stabilize costs heading into 2026.
How Fuel Pricing Works in Pakistan
Pakistan follows a deregulated but guided pricing mechanism:
- OGRA prepares a summary based on global trends.
- It forwards recommendations to the Petroleum Division.
- The Finance Division reviews tax implications.
- The Prime Minister gives final approval.
Prices are uniform nationwide, though slight regional variations occur due to transport costs. Major players like Pakistan State Oil (PSO), Shell, and Attock Petroleum distribute fuels.
Historical Trends in 2025
Throughout 2025, prices have fluctuated:
- Early year: Gradual increases due to global recovery.
- Mid-year: Peaks amid geopolitical tensions.
- Late 2025: Softening international rates leading to cuts, including December 1 reductions (petrol -Rs 2, diesel -Rs 4.79).
This latest move continues the trend of targeted relief.
What Consumers Can Expect Next
The next review is due around December 31, 2025. With OPEC+ decisions and winter demand in play, prices could remain volatile. If crude oil stays below $80/barrel, further easing is possible.
Frequently Asked Questions (FAQs)
What is the current price of petrol in Pakistan as of December 17, 2025?
The price of petrol (motor gasoline) remains unchanged at Rs 263.45 per litre. This rate has been in effect since December 16, 2025, following the government’s latest fortnightly review.
How much has the price of high-speed diesel (HSD) changed recently?
High-speed diesel prices have been reduced by Rs 14 per litre, bringing the new price to Rs 265.65 per litre effective from December 16, 2025. This provides significant relief to the transport and agriculture sectors.
When do these new fuel prices take effect, and how long will they last?
The updated prices became effective from midnight on December 15-16, 2025, and will remain in place until the next review, expected around December 31, 2025 (for the fortnight ending January 15, 2026).
Why was diesel reduced significantly while petrol stayed the same?
The adjustment reflects fluctuations in international oil markets, where diesel prices dropped more noticeably than petrol. The government passed on partial benefits while maintaining high petroleum levies to meet fiscal targets.
How often does the government review fuel prices in Pakistan?
Fuel prices are reviewed every 15 days (fortnightly) by the Oil and Gas Regulatory Authority (OGRA), based on global trends, exchange rates, and taxes. Final approval comes from the Prime Minister.
