Government Announces Minor Change in Petroleum Prices – Petrol Unchanged, Diesel Increased

After days of speculation, the government has finally announced the new petroleum prices in Pakistan, effective from September 16, 2025. As per the notification, petrol will remain at its existing price, but the rate of high-speed diesel has gone up slightly.

The revision follows OGRA’s routine review of global oil markets and currency fluctuations. In this piece, we’ll break down the latest fuel prices, why the change was made, and how it could affect everyday life.

Petroleum Prices Update (September 16–30, 2025)

Product	Old Price (per litre)	New Price (per litre)	Change
Petrol (MS)	Rs 293.94	Rs 293.94	No Change
High-Speed Diesel	Rs 290.38	Rs 292.10	+Rs 1.72
Kerosene Oil	Rs 195.40	Rs 195.40	No Change
Light Diesel Oil	Rs 170.68	Rs 170.68	No Change

Why Petrol Price is Unchanged but Diesel Increased?

Government officials explained that the price of petrol has been kept stable to provide relief to ordinary citizens, especially motorbike and small car owners who rely on petrol for daily travel. However, the diesel price was slightly increased because international rates for diesel have shown an upward trend.

Diesel plays a vital role in the transport and agriculture sector of Pakistan. Any change in its price often impacts goods transportation, food inflation, and farming costs.

Expected Impact on Daily Life

Transport Costs: With a Rs 1.72 increase in diesel, intercity bus fares and freight charges may see a slight rise.
Agriculture Sector: Diesel tractors and tube wells used by farmers could face higher running costs, especially in rural Punjab and Sindh.
Inflationary Pressure: Economists warn that if diesel prices continue to rise, it may indirectly push food and essential item prices upward.

Despite these concerns, the unchanged petrol price is being seen as a relief for the lower-income group, who heavily depend on motorcycles for commuting.

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Govt’s Petroleum Pricing Mechanism

Every fortnight, OGRA sends its recommendation to the Ministry of Finance after reviewing:

International oil price trends
Exchange rate fluctuations
Tax rates and petroleum levy adjustments
Freight and distribution margins

The federal cabinet makes the final decision, which is then announced through an official notification.

Public Reaction

In Karachi, Lahore, and Peshawar, people expressed mixed feelings. A rickshaw driver in Lahore told media that keeping petrol prices stable is good news, but any hike in diesel eventually affects the overall cost of living. Farmers’ associations in Sindh also urged the government to consider subsidies on diesel, as it is directly linked to food production.

Looking Ahead

Analysts believe that the future of fuel prices in Pakistan will depend on two major factors:

The global oil market trend in the coming weeks.
The rupee-dollar parity, which has remained volatile in recent months.

If international crude prices rise further, Pakistan may face another increase in the upcoming revision.

Conclusion

While the government’s decision to keep petrol unchanged brings some relief to millions of commuters, the slight hike in diesel prices will still have an impact on transport and agriculture costs. For now, the move reflects a balancing act by the authorities, trying to shield the public from inflation while also adjusting to global fuel market realities.