ISLAMABAD: The prices of all petroleum products are estimated to decrease by up to Rs6.30 per litre on Sunday for the next fortnight ending Dec 15, due to slight variations in the international market.
Based on existing tax rates, informed sources said the ex-depot price of high-speed diesel (HSD) is expected to drop by about Rs3.70 per litre (about 1.4pc), depending on the final calculation, while the petrol rate would also come down by about Rs4.3 per litre or 1.5pc.
Petrol and HSD prices have increased by about Rs12.50 and Rs29 per litre, respectively, since June 1, 2025.
The ex-depot prices of Kerosene and light diesel oil (LDO) are also estimated to reduce by Re1 (0.3pc) and Rs6.35 per litre (3.7pc), respectively. The kerosene and LDO rates currently stand at Rs194.34 and Rs170.80 per litre, respectively.
The ex-depot petrol price currently stands at Rs265.45 per litre, which may come down to Rs261.75. Petrol is primarily used in private transport, small vehicles, rickshaws, and two-wheelers, and has a direct bearing on the budgets of middle- and lower-middle-class households.
The ex-depot price of HSD stands at Rs284.44 per litre, which may drop to Rs280 per litre on Dec 1. Most of the transport sector runs on HSD.
Its price is considered inflationary, as it is mostly used in heavy transport vehicles, trains, and agricultural engines such as trucks, buses, tractors, tube wells, and threshers, which push up prices of vegetables and other eatables. Transporters had already increased their fares by about Rs27 per litre between May and August and have not reversed the increase despite a Rs9 per litre cut.
The government is currently charging about Rs100 per litre on petrol and about Rs96 per litre on diesel. Although the General Sales Tax (GST) is zero on all petroleum products, the government is charging Rs78 per litre on diesel and Rs82 per litre on petrol and high-octane products on account of the petroleum development levy and the climate support levy. This also includes Rs2.50 per litre CSL.
The government is also charging about Rs16-17 per litre in customs duty on petrol and HSD, irrespective of whether they are locally produced or imported. In addition, about Rs17 per litre distribution and sale margins are going to oil companies and their dealers.
Petrol and high-speed diesel are the major revenue spinners, with monthly average sales of about 700,000-800,000 tonnes, compared to just 10,000 tonnes of kerosene demand.
The government recovered about Rs1.161 trillion through the petroleum levy alone in FY25 and expects this to jump by about 27pc to Rs1.470 trillion during the current fiscal year.
Published in Dawn, November 29th, 2025
