ISLAMABAD: Petroleum prices are expected to decline by up to Rs6.30 per litre from Sunday for the next fortnight ending December 15, driven by mild fluctuations in global oil markets.
According to informed sources, the ex-depot price of high-speed diesel (HSD) may fall by around Rs3.70 per litre (1.4pc), while petrol is likely to see a reduction of approximately Rs4.30 per litre (1.5pc). Since June 1, 2025, petrol and HSD prices have risen by roughly Rs12.50 and Rs29 per litre, respectively.
Kerosene and light diesel oil (LDO) rates are also projected to decrease by Re1 (0.3pc) and Rs6.35 (3.7pc) per litre. Currently priced at Rs194.34 and Rs170.80 per litre, kerosene and LDO serve lower-income households and small-scale industries.
Petrol, widely used in private vehicles, rickshaws, and motorcycles, is expected to drop from Rs265.45 to Rs261.75 per litre. Meanwhile, HSD — the backbone of the transport, agriculture, and logistics sectors — may come down from Rs284.44 to Rs280 per litre. Despite earlier price cuts, transporters have not reversed the Rs27 per litre fare hike imposed between May and August.
The government currently collects around Rs100 per litre on petrol and Rs96 on diesel through various levies, despite GST remaining at zero. This includes Rs78 per litre petroleum development levy (PDL), Rs82 per litre on high-octane products, and Rs2.50 per litre climate support levy (CSL). Additionally, customs duties of Rs16–17 per litre apply uniformly to locally produced and imported fuels, while oil companies and dealers collectively receive about Rs17 per litre in margins.
Petrol and HSD remain the primary revenue generators, with monthly sales of 700,000–800,000 tonnes, compared to only 10,000 tonnes of kerosene. The government collected Rs1.161 trillion through PDL in FY25, with expectations to boost this to Rs1.470 trillion in the current fiscal year.
Story by Khaleeq Kiani
