Pakistan Announces Reduction in High-Speed Diesel Price

Strategic Insights -

The Pakistan government has announced a reduction of Rs12.84 in the price of high-speed diesel (HSD) for the current fortnight, while keeping petrol prices unchanged, effective immediately until August 31. This decision follows a review of international market trends and recommendations from the Oil and Gas Regulatory Authority (Ogra) and other relevant ministries. The reduction in HSD price is seen as a relief for the transport sector, especially in heavy vehicles, trains, and agricultural machinery, as the price of HSD has risen by Rs29.5 per litre over the past five quarters.

Key Takeaways:

  • The ex-depot price of HSD has been decreased by Rs12.84 per litre (4.5 per cent) to Rs272.99 for the next fortnight, down from Rs285.83 per litre.
  • The ex-depot price of petrol remains unchanged at Rs264.61 per litre.
  • The reduction in HSD price is expected to impact the cost of transporting goods, including vegetables and other essentials, and is seen as inflationary.
  • Kerosene and light diesel oil (LDO) rates were reduced by about Rs7.19 and Rs8.20 per litre, respectively, due to fluctuations in international market trends.
  • The government currently imposes Rs95 per litre in taxes on both petrol and diesel, and charges Rs16-17 per litre in custom duties on both petrol and HSD.
  • The government collected Rs1.161 trillion through petroleum levy alone in fiscal year 2025 and expects this to jump by about 27pc to Rs1.47 trillion in the current fiscal year.
  • The Oil and Gas Regulatory Authority (Ogra) has announced a 1.3-1.5 per cent increase in the price of Regasified Liquefied Natural Gas (RLNG) for sales at the transmission stage by the two Sui gas companies for the current month.
  • Karachi-based Sui Southern Gas Company Limited (SSGCL) saw a decrease in its system losses at the distribution stage, dropping from 16.16pc to 10.6pc, while Lahore-based Sui Northern Gas Pipelines Limited (SNGPL) reduced its system losses at the distribution stage to 7.47pc.
  • The RLNG sale price for SNGPL has been increased by 1.32pc to $10.98 per million British thermal units (mmBtu) for August against $10.834 in July.

Statistics:

  • Rs12.84 per litre reduction in HSD price
  • Rs12.84 billion reduction in HSD revenue for the current fortnight
  • 4.5 per cent decrease in HSD price
  • Rs29.5 per litre increase in HSD price over the past five quarters
  • Rs1.161 trillion collected through petroleum levy in fiscal year 2025
  • 27pc increase expected in petroleum levy collection in the current fiscal year
  • 1.3-1.5 per cent increase in RLNG price for sales at the transmission stage
  • $10.98 per mmBtu RLNG sale price for SNGPL in August

Sources:

  • Ministry of Finance, Pakistan government
  • Oil and Gas Regulatory Authority (Ogra)
  • Sui Southern Gas Company Limited (SSGCL)
  • Sui Northern Gas Pipelines Limited (SNGPL)