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Pakistan Fuel Price Update: Petrol & Diesel Costs Rise - What You Need to Know (November 2025)
Are you feeling the pinch at the pump? PakistanS federal government recently adjusted fuel prices, impacting both consumers and businesses. Understanding these changes – and why they happen – is crucial for budgeting and economic awareness. This article breaks down the latest price hikes for petrol and high-speed diesel (HSD), explores the contributing factors, and explains what this means for you.
The Latest Numbers:
As of a late-night announcement on October 31st, 2025, the Ministry of Finance confirmed the following price adjustments, effective for the next fortnight:
* petrol: Increased by Rs2.43 per litre, now priced at Rs265.45 per litre (up from Rs263.02).
* High-Speed Diesel (HSD): Increased by Rs3.02 per litre,reaching Rs278.44 per litre (previously Rs275.42).
* Liquefied Petroleum Gas (LPG): A notable decrease of Rs5.88 per kilogram, now at Rs201.60 per kg.An 11.8kg cylinder costs Rs2,378.89, down Rs69.44 from October.
Why the Increase? Understanding the Factors at Play
These adjustments aren’t arbitrary. the government bases its decisions on a complex interplay of factors, primarily movements in the international oil market and recommendations from the Oil and Gas Regulatory Authority (Ogra). Here’s a closer look:
* Global Oil Prices: Fluctuations in crude oil prices – influenced by geopolitical events, supply and demand dynamics, and OPEC+ decisions – directly impact the cost of imported fuel. Recent volatility in the Middle East has contributed to upward pressure on prices.
* Exchange Rate: The Pakistani Rupee’s value against the US dollar plays a significant role. A weaker Rupee means imported fuel becomes more expensive.
* Taxes & Levies: A ample portion of the fuel price comprises government taxes and levies. Currently, approximately Rs99 per litre is levied on both petrol and diesel. This includes a petroleum levy (Rs79.50/litre on diesel, Rs80.52/litre on petrol & high-octane) and a climate support levy.A General Sales Tax (GST) of zero is applied, but customs duties of around Rs17-18 per litre are levied regardless of local production or imports.
* Distribution & Marketing Costs: Around Rs17 per litre covers the costs associated with distributing fuel from refineries to petrol stations, including margins for oil companies and dealers.
Impact on Different Sectors
The price hike will be felt differently across various sectors:
* Transport: HSD is the lifeblood of the transport sector, powering heavy vehicles like trucks, buses, trains, and agricultural machinery (tractors, tube-wells). Increased HSD prices translate directly into higher transportation costs, ultimately impacting the prices of goods and services – notably food items like vegetables.
* Consumers: Petrol primarily fuels private vehicles, motorcycles, and rickshaws. The increase will directly affect the budgets of middle and lower-middle-class families, increasing commuting costs.
* LPG Users: The decrease in LPG prices offers some relief to households relying on it for cooking and heating.
Fuel Consumption Patterns in Pakistan
Understanding consumption patterns provides further context.Petrol and HSD dominate the market, accounting for 700,000 to 800,000 tonnes of monthly consumption. Kerosene consumption is considerably lower,around 10,000 tonnes per month. This highlights the critical importance of petrol and diesel price stability for the overall economy.
Government Revenue from Petroleum Levy
The petroleum levy is a significant revenue source for the government. In FY25, collections reached Rs1.161 trillion, and are projected to increase by approximately 27% to Rs1.47 trillion in the current fiscal year. This revenue is earmarked for various government initiatives.
Recent Trends & Future Outlook (updated November 2025)
According to a recent report by the Pakistan Institute of Development economics (PIDE) published in October 2025, Pakistan’s reliance on imported oil makes it particularly vulnerable to global price shocks. The report suggests diversifying energy
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