Govt Considers First Fuel Price Slash in Months
After weeks of consecutive increases in fuel prices, a possible decrease is on the horizon for Pakistani consumers, with revised petroleum rates set to be announced on August 1, 2025.
Government sources suggest that petrol prices may be reduced by Rs6 to Rs7 per litre, while diesel could see a smaller cut of Rs1 to Rs2 per litre. If the proposed changes are approved, petrol would drop to approximately Rs265–266 per litre, and diesel may be adjusted to around Rs282.
Currently, petrol stands at Rs272.15 per litre and diesel at Rs284.35, following sharp increases since early June. At the start of June, petrol was priced near Rs250, indicating a cumulative hike of nearly Rs20 over two months.
Analysts believe that recent improvements in inflation rates and broader economic stability have created space for the federal government to introduce these cuts. Declining global oil prices and currency adjustments may also have contributed to the decision.
The potential reduction has sparked public optimism. With rising utility bills and food costs, many citizens view the anticipated price cut as a necessary relief amid the country’s ongoing cost-of-living crisis.
The Finance Division is expected to announce the final fuel prices by the end of this week. While no official statement has been released yet, experts indicate that current economic conditions favour at least a partial reduction.
Petroleum prices in Pakistan are reviewed bi-monthly and are directly influenced by international market trends, exchange rates, and tax adjustments. The upcoming review will be closely watched by both the public and market observers.
