Petrol Price September 2025: No Change, Diesel Cut by Rs 3

The federal government has announced a fresh revision of petroleum prices for the fortnight starting today. Petrol prices remain unchanged, while diesel and other fuels have seen slight cuts, reflecting changes in the international market.

Updated Fuel Prices (September 1–15, 2025)

• Petrol: Rs 264.61/litre (no change)

• High-Speed Diesel (HSD): Rs 269.99/litre (reduced by Rs 3)

• Light Diesel Oil (LDO): Rs 159.76/litre (reduced by Rs 2.40)

• Superior Kerosene Oil (SKO): Rs 176.81/litre (reduced by Rs 1.46)

Global Trends Behind the Decision

While most reports only highlighted local price cuts, official sources confirm that global oil prices played a central role in the decision. Brent crude hovered around $73–75 per barrel last week, showing a slight dip compared to mid-August. At the same time, the Pakistani rupee remained relatively stable against the US dollar, allowing authorities to maintain petrol prices and pass on a modest relief in diesel.

Taxes and Levies Breakdown

Petrol and diesel prices in Pakistan are not only determined by global markets but also by heavy domestic taxation. Current calculations include:

• Petroleum Levy (PL): Rs 60/litre on both petrol and diesel

• Customs duty and dealer margins

• General sales tax is currently at zero, but levies keep end-user prices high

This means that even when global oil prices drop, local consumers may not feel the full benefit due to high government charges.

Sector-Wise Impact

• Agriculture: Diesel is widely used in tractors, harvesters, and tube-wells. A Rs 3 cut, though small, is expected to marginally reduce farmers’ operational costs during the upcoming sowing season.

• Transport and Logistics: Heavy vehicles run primarily on diesel. Lower rates could slightly ease freight charges, which may reduce price pressures on essential goods.

• Consumers: Petrol users — mainly motorcyclists and car owners — will see no change in fuel costs, which directly impacts middle- and lower-income groups.

Historical Price Trend

This is the second consecutive fortnight where diesel has been reduced. In mid-August, HSD saw a significant cut of Rs 12.84 per litre, whereas petrol has largely remained stable. Year-on-year, petrol prices are still higher compared to September 2024, reflecting the impact of global volatility and domestic taxation.

What’s Next?

The next review is scheduled for September 15, 2025. Market watchers say further reductions depend on two factors:

1. Global crude oil movement in the coming weeks

2. Stability of the Pakistani rupee against the dollar

If international prices continue to soften, consumers could expect more relief in mid-September.

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