Government Reduces Petrol and Diesel Prices

The federal government has resolved to decrease the ex-depot prices of both petrol and high-speed diesel (HSD) by Rs 2 per litre. This reduction will be effective for the two-week period commencing May 1, 2025.

According to a statement from the Finance Division, this decision to adjust petroleum product prices for the upcoming two weeks is based on assessments provided by OGRA and relevant ministries.

Consequently, the price of petrol has been lowered from Rs 254.63 to Rs 252.63 per litre. Similarly, the rate for HSD has been revised downwards from Rs 258.64 to Rs 256.64 per litre.

The marginal decrease in crude oil prices has led to slightly reduced expenses for petroleum products within Pakistan. However, the government’s recent action to eliminate the Fifth Schedule—a mechanism previously capping the petroleum levy at Rs 70 per liter—has sparked discussions about whether consumers will fully benefit from these lower crude prices.

Currently, the government is levying a petroleum levy (PL) of Rs 78.02 per litre on petrol and Rs 77.01 per litre on HSD. The Inland Freight Equalization Margin (IFEM) rate has been adjusted downward from Rs 6.89 to Rs 6.30 per litre. Meanwhile, the Oil Marketing Companies’ (OMC) margin remains unchanged at Rs 7.87 per litre, and the dealer margin stays at Rs 8.64 per litre.

The price of kerosene oil has seen an increase, rising from Rs 250.14 to Rs 252.13 per litre, also effective from May 1, 2025.