ISLAMABAD: The federal government has announced a major cut in the prices of petroleum products, offering significant financial relief starting from October 16, 2025. The fortnightly review saw the largest decrease in petrol, which fall by Rs 5.66 per litre.
High Speed Diesel (HSD), a key fuel for transport and agriculture, has seen its price lowered by Rs 1.39 per litre. Meanwhile, the rate for kerosene oil has been reduced by Rs 3.26 per litre, and Light Diesel Oil (LDO) is down by Rs 2.74 per litre.
Sources attribute the positive change, in part, to a drop in the cost of importing refined fuels. The import premium for petrol currently stands at $6.62 per barrel, with the premium for HSD recorded at USD 3.20 per barrel.
The petrol, which is now fixed at Rs 263.02 per litre, down from the previous rate of Rs 268.68 per litre. High Speed Diesel is now available for Rs 275.41 per litre, down from Rs 276.81 per litre.
The new rate for Kerosene Oil has been set at Rs 181.71 per litre, compared to the earlier price of Rs 184.97 per litre and LDO has been reduced to Rs 162.76 per litre, down from Rs 165.50 per litre. In last review, the price structure included substantial levies, with a petroleum levy and carbon surcharge of Rs 80.52 per litre on petrol and Rs 79.51 on HSD.
The Inland Freight Equalization Margin (IFEM) was Rs 8.69 per litre for petrol and Rs 6.19 for HSD, with no exchange rate adjustment recorded in the last review period.
Copyright Business Recorder, 2025
