Pakistan Cuts Diesel, Kerosene, and LDO Prices – Petrol Unchanged

ISLAMABAD, September 1, 2025 – The Government of Pakistan has announced new petroleum product prices for the next two weeks, with slight reductions in diesel, kerosene, and light diesel oil, while petrol remains unchanged.

Revised Fuel Prices

• Petrol: No change, remains Rs. 264.61 per litre.
• High-Speed Diesel (HSD): Down Rs. 3.00, new price Rs. 269.99 per litre.
• Kerosene Oil: Down Rs. 1.46, new price Rs. 176.81 per litre.
• Light Diesel Oil (LDO): Down Rs. 2.40, new price Rs. 159.76 per litre.

What It Means for the Economy

• Inflation: Diesel fuels transport and agriculture. Its cut may slightly reduce costs of food and essentials. Petrol users, however, get no relief.
• Trade Balance: Lower prices signal stability in global oil markets. But if the rupee weakens, Pakistan’s import bill could rise again.

• Government Revenue: With IMF conditions in play, petrol was kept unchanged to secure levy collections while offering limited relief.
• Farming & Industry: Cheaper diesel should ease costs for farmers and industries, helping output and supply chains.
• Global Volatility: Pakistan remains exposed to shifts in international oil prices. The fortnightly adjustment system passes global changes directly to consumers.

Bottom Line

The small reductions bring short-term relief for agriculture and transport sectors, but Pakistan’s dependence on imported fuel means prices will stay tied to global market swings and currency movements.

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