The federal government has announced revised petroleum prices for the next fortnight, bringing slight relief to consumers. The new rates, issued by the Ministry of Finance, will be effective from March 1, 2025.
According to the latest notification, the price of petrol has been reduced by Rs. 0.50, setting the new rate at Rs. 255.63 per liter.
Meanwhile, the price of high-speed diesel (HSD) has been reduced by Rs. 5.31, now costing Rs. 258.64 per liter.
Latest Fuel Prices in Pakistan (March 2025)
| Product | Previous Price (Rs.) | New Price (Rs.) | Change (Rs.) |
|---|---|---|---|
| Petrol | 256.13 | 255.63 | -0.50 |
| High-Speed Diesel (HSD) | 263.95 | 258.64 | -5.31 |
These revised prices will be applicable from midnight on March 1, 2025 and will remain in effect for the next two weeks until the next review.
During the last fortnightly review in February 2025, the government reduced petrol prices by Rs. 1 per liter, while the price of high-speed diesel saw a Rs. 4 per liter reduction.
Despite these reductions, fuel prices in Pakistan remain relatively high due to government-imposed levies and international oil market fluctuations.
The cost of petroleum products in Pakistan is influenced by several factors, including global oil prices, exchange rates, and government-imposed taxes.
Government Taxes and Duties on Petroleum Products
The government currently imposes the following charges:
- Petroleum Development Levy (PDL): Rs. 60 per liter on both petrol and diesel.
- Customs Duty: Rs. 16 per liter on both products.
These taxes significantly impact the final retail price of fuel,Govt reduces limiting the extent of price reductions for consumers.
A Rs. 5.31 reduction may help lower freight costs, which could slightly ease inflationary pressures.
While the Rs. 0.50 decrease in petrol price is insignificant, it may prevent further cost hikes in goods Govt reduces and services.
Pakistan is a net importer of petroleum products, meaning any changes in global crude oil prices and USD-PKR exchange rates can impact domestic fuel prices.
