Motorists across Pakistan may soon receive a much-needed financial break. Starting from August 1, 2025, the prices of petrol and diesel are expected to decrease, according to a new report from Arif Habib Limited (AHL). As inflation and daily expenses continue to affect millions of households, this possible drop in fuel prices brings a ray of hope for drivers, small businesses, and public transport users. Pakistan State Oil
According to the AHL estimate, petrol (Motor Spirit) could see a reduction of Rs6.82 per liter, while High-Speed Diesel (HSD) may go down by Rs1.68 per liter. If these proposed prices are approved, the new rate for petrol might be around Rs265.33 per liter, and diesel could be sold at about Rs282.67 per liter. These changes, though moderate, would help reduce transportation costs for many people.
The reason behind the expected price cut is a drop in international oil prices. During the pricing period from July 16 to July 31, the average price of Brent crude oil was approximately $68.75 per barrel, and WTI crude oil averaged $65.98 per barrel. These are significantly lower than earlier this year. Additionally, the exchange rate remained steady at around Rs284.25 per US dollar, which also helped keep the fuel import costs stable.
However, there is a catch. The government is planning to apply a new petroleum levy of Rs2.50 per liter on both petrol and diesel. This tax could slightly reduce the overall benefit of the price drop. While the base prices are decreasing, the final retail prices might not reflect the full reduction due to the levy.
Still, even a small decline in petrol and diesel prices is a relief for people who use vehicles daily. Whether they are delivery riders, public transport drivers, or private car owners, lower fuel costs will directly affect their monthly budgets. It can also help in reducing inflationary pressure, especially on goods that rely on fuel for transportation, such as fruits, vegetables, and household essentials.
As of now, everyone is waiting for the official government announcement, which is expected shortly before the start of August. If approved, the new prices will take effect on August 1, 2025, and consumers across Pakistan can begin to enjoy the benefits of reduced fuel costs.
This price adjustment shows how global oil markets and exchange rates directly impact everyday life in Pakistan. It also highlights the importance of transparent pricing policies and how timely decisions by the government can bring relief to millions during times of economic stress. Oil and Gas Regulatory Authority (OGRA)
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