ISLAMABAD:
The government on Monday reduced the price of diesel by Rs 14 per liter depending on fluctuations in global oil prices, effective December 16.
However, the government has maintained current gasoline prices. After the recent reduction, diesel will be sold at Rs265.65 per liter against the old price of Rs279.65 per litre, registering a reduction of Rs14 per litre.
However, the price of petrol was kept at Rs263.45 per litre.
High-speed diesel is widely used in the transportation and agricultural sectors; therefore, any fluctuation in its price has a direct impact on the cost of living of consumers and farmers.
The substantial reduction of Rs14 per liter in the price of diesel is therefore expected to be welcomed by the public, as it could help ease inflationary pressures for consumers.
Gasoline, mainly used in motorcycles and cars, saw no reduction. The government’s decision therefore brings little relief to motorists, with the price of gasoline remaining unchanged.
Petrol is also an alternative to CNG, and its consumption has increased, particularly in Punjab, following the ban on local gas at CNG outlets. CNG stations in the province now rely on imported gas, which is significantly more expensive.
Based on prevailing tax rates, the oil industry had anticipated a reduction of up to Rs 11.85 per liter, or around 4.2 per cent, in the price of high-speed diesel, according to final calculations. Petrol prices are expected to fall by around 36 paisa per liter, or 0.1 per cent.
The Economic Coordination Committee (ECC) of the cabinet on December 9 approved an additional margin of Rs2.56 per liter on petrol and diesel to improve the profitability of oil marketing companies (OMCs) and their dealers.
Although the General Sales Tax (GST) remains zero on all petroleum products, consumers continue to pay higher petroleum levies and climate support levies. In the first half of December, consumers paid a petroleum cess of Rs 78 per liter on diesel and Rs 82 per liter on petrol and high-octane products, which included a climate support cess of Rs 2.50 per liter.
The government collected around Rs 1.161 trillion from oil tax alone in the 2024-25 financial year and expects collections to increase by around 27 per cent to Rs 1.470 trillion in the current fiscal year.
LNG prices
The Oil and Gas Regulatory Authority (OGRA) on Monday notified a drop in the prices of regasified liquefied natural gas (RLNG) for the month of December.
According to OGRA, the RLNG transmission price for Sui Northern Gas Pipelines Limited (SNGPL) has been set at $10.9186 per MMBtu, while the distribution price stands at $11.8280 per MMBtu. This reflects a decrease of $0.5119 (4.48%) in transmission prices and $0.5716 (4.61%) in distribution prices compared to November 2025.
For Sui Southern Gas Company Limited (SSGCL), OGRA set the RLNG transmission price at $9.4741 per MMBtu and the distribution price at $10.7767 per MMBtu. These numbers represent a decrease of $0.5911 (5.87%) in transmission and $0.6753 (5.90%) in distribution compared to the previous month.
OGRA said the RLNG price reduction is in line with federal government policy directives and is primarily a result of a decrease in the Delivered Ex-Ship (DES) price.
