Govt keeps petrol price unchanged, cuts diesel by Rs12.84 per litre

ISLAMABAD: The federal government on Friday announced revised petroleum product prices for the next fortnight, maintaining petrol price while cutting diesel prices significantly.

According a notification issued by the Finance Division, the petrol price remains unchanged at Rs264.61 per litre.

However, the price of high-speed diesel (HSD) has been slashed by Rs12.84 per litre to Rs272.99, while superior kerosene oil (SKO) has been reduced by Rs7.19 to Rs178.27 per litre.

Light diesel oil (LDO) will now cost Rs162.37 per litre after an Rs8.20 cut.

The prices were revised on the recommendations from the Oil and Gas Regulatory Authority (OGRA) and relevant ministries.

The revised prices will remain in effect from August 16 until the end of the month.

Unexpected revision

The revised prices are contrary to the expectations and analysis of market experts, who had anticipated that petrol price in Pakistan could fall by around Rs8 per litre, offering some respite for daily commuters and transporters who rely heavily on fuel.

They had hoped that the downward trend in international crude prices — with US crude slipping by $5.71 per barrel to $63.48 and Brent crude falling by $5.72 to $65.98 — combined with a slight reduction in the petrol import premium, would translate into reduced petrol price in Pakistan.

Pakistan’s oil and gas production hits two-decade low

According to a research report released by Topline Securities earlier in the day, Pakistan’s hydrocarbon production hit an over two-decade low in the financial year 2024–25 (FY25), with oil and gas volumes down 12 per cent and 8 per cent year-on-year (YoY), respectively, as surplus regasified liquefied natural gas (RLNG) in the system led to curtailment of local production.

The decline was sharper in 4QFY25, as oil production fell 8 per cent quarter-on-quarter (QoQ) and 15 per cent YoY, while gas declined 7 per cent QoQ and 10 per cent YoY, reflecting persistent strain on the sector’s performance.

Oil production averaged 62.4k barrels per day (bpd) in FY25, with volumes down between 3 and 46 per cent across major fields including Makori East, Nashpa, Maramzai, Pasakhi and Mardankhel.