Oil prices are projected to decline from August 16th onwards.
In a significant move, the Pakistani government has announced that the prices of petroleum products, particularly high-speed diesel (HSD), are set to decrease from August 16, 2025. This decision comes in response to a notable fall in global crude oil prices.
The price of HSD will be reduced by Rs12.84 per litre, bringing it down to Rs272.99, while petrol prices will remain unchanged at Rs264.61 per litre for the next fortnight starting August 16. This adjustment follows recommendations from the Oil and Gas Regulatory Authority (OGRA) and reflects adjustments after monitoring international market trends.
The decrease in global crude oil prices directly impacts the base cost of petroleum products, allowing the government to lower retail prices. This move is part of routine fortnightly reviews, aligning domestic fuel prices with international oil market fluctuations.
Earlier in August, petrol prices were reduced by Rs7.54 per litre, while HSD prices were slightly raised, in response to market movements at that time. As global crude prices declined further, the government responded by cutting diesel prices significantly for the next fortnight from August 16 onward.
The minister of state for Petroleum, Ali Pervez Malik, provided this information during the National Assembly's Question Hour. The new petroleum product prices are expected to take effect from August 16, according to data reported by Geo News on Monday.
It is worth noting that despite a levy increase on April 16, prices for consumers were not raised. From April 16 until 30 June, Rs34.87 billion was collected through petroleum levy. An estimated Rs1.485 trillion will be collected in the fiscal year 2025-26 through petroleum levy.
The decline in global crude oil prices over the past 11 days is expected to cause a decrease in petroleum product prices in Pakistan. As of August 1, the price of MS (petrol) is Rs264.61 per litre, while the price of HSD is Rs285.83 per litre.
The decrease in both US and Brent crude oil prices is significant. US crude oil price decreased from $69.26 to $63.48 per barrel, while Brent crude oil price decreased from $71.70 to $65.98 per barrel. These decreases amount to $5.71 and $5.72 per barrel respectively.
The government will change domestic petroleum prices on August 16, marking a relief for consumers who have been dealing with increasing fuel costs. The exact changes in global or domestic crude oil prices were not provided in this paragraph. However, the current trend suggests a positive outlook for consumers in the coming weeks.
The government's decision to lower the retail prices of petroleum products, particularly HSD, follows a significant drop in global crude oil prices. This trend in the energy industry, driven by decreases in both US and Brent crude oil prices, will likely impact the finance sector, as a decrease in domestic petroleum prices will provide relief to consumers.
