Petrol Price Declines as Global Oil Rates Ease
ISLAMABAD: Pakistan is expected to cut petrol prices starting August 1, 2025, as global oil markets trend downward. According to official sources, the petrol price per barrel has fallen from $75.27 to $73.19. In parallel, the import premium on petroleum has also declined sharply—from $9.61 to $6.74 per barrel.
This fall in international oil rates is now reflecting in local ex-refinery costs. The ex-refinery petrol price has dropped from Rs168.73 to Rs159.66 per litre, a decline of over Rs9 per litre.
Lower Customs Duties Add to Relief
The decline in oil and premium costs has also reduced customs duties. These have fallen from Rs15.33 to Rs14.29 per litre, making room for further adjustments in the retail petrol price.
These changes come at a time when the Pakistani Rupee has shown relative strength, contributing to lower import bills. However, exchange rate fluctuations may still influence the final decision. Officials say that if the rupee weakens, the expected relief may be trimmed.
Price Proposal Submitted for August 1
Sources confirmed that the final pricing summary has been prepared. The proposal will be submitted to the Ministry of Finance on July 31, 2025. This will include adjustments for exchange rate trends, import premiums, and refinery margins.
The ministry will also evaluate the proposal against its fiscal targets. High inflation and growing budgetary needs could prompt a higher petroleum levy, which may reduce the net petrol price relief to the public.
Petrol Price Relief May Be Partial
While the expected reduction is welcome news, it may not reach its full potential. If the government chooses to raise the petroleum levy, part of the benefit from global oil savings could be offset.
This has happened in previous months when international prices dropped but domestic prices stayed flat due to revenue collection needs. The Ministry of Finance is expected to announce the official prices in a notification by July 31 night.
Focus on Transparency and Affordability
The public and transport sector eagerly await the relief, especially as fuel prices have remained elevated for months. Any cut in petrol price directly impacts transportation costs, goods movement, and inflation trends across Pakistan.
Analysts believe that this relief, if not watered down by taxes, could ease pressure on household expenses and help moderate consumer inflation in August.
Conclusion: Will Petrol Price Relief Be Real?
Pakistan’s next petrol price adjustment depends on two key factors: global oil rates and domestic tax policy. While both show positive signs, only time will tell how much of the benefit reaches ordinary citizens.
For now, all eyes are on the Ministry of Finance and the official price notification due at the end of July. Click here for more latest news.
