ISLAMABAD: Prime Minister Shehbaz Sharif has approved a reduction in the prices of petroleum products effective from October 16, 2025.
The Oil and Gas Regulatory Authority (OGRA) had earlier moved the summary to the prime minister.
According to sources in OGRA, the price of petrol has been reduced by Rs5.66 per litre, setting the new rate at Rs263.02 per litre.
The price of high-speed diesel has been reduced by Rs1.39 per litre, bringing the new price to Rs275.42 per litre.
Similarly, the price of kerosene oil has been slashed by Rs3.26 per litre, setting the new rate at Rs181.71 per litre.
Officials familiar with the matter said the decline follows a recent dip in global oil prices.
Heavy levies still weigh on prices
Despite the reduction, the current price structure continues to carry heavy taxes. Petrol bears a petroleum levy and carbon surcharge of Rs80.52 per litre, while HSD is burdened with Rs79.51 per litre in similar charges.
The Inland Freight Equalisation Margin (IFEM) stands at Rs8.69 per litre for petrol and Rs6.19 per litre for diesel, with no exchange rate adjustment recorded in the last review period.
If approved, the expected cut in prices will provide some respite for inflation-hit consumers, although high taxes and freight costs continue to limit the full benefit of falling international oil prices.
In global oil markets, prices continued to fall in early trade on Wednesday, extending losses from the previous session. Investors appeared cautious after the International Energy Agency (IEA) warned of a potential supply surplus in 2026 and as renewed US-China trade tensions raised concerns about weaker demand.
Brent crude futures slipped 12 cents, or 0.19 percent, to $62.27 a barrel by 0021 GMT, while US West Texas Intermediate (WTI) futures dropped 10 cents, or 0.17 percent, to $58.60 a barrel. Both benchmarks ended Tuesday at five-month lows.