Diesel Prices to Drop by Rs11.5, Petrol to See Small Increase.

ISLAMABAD: Fuel prices are likely to shift again this week, and for once, there might be some good news, though not for everyone.

According to sources familiar with the matter, petrol prices are expected to rise by around Rs1.40 per liter, starting August 16, while high-speed diesel (HSD) could drop by a substantial Rs11.50 per liter. The expected adjustment is based on the latest international market trends and current exchange rates.

In global markets, diesel prices have come down by roughly $4.50 per barrel over the past two weeks, while petrol has gone up slightly—just 15 cents per barrel. That small increase, combined with local tax structures, is what’s pushing the petrol price back up, despite a slight strengthening of the rupee against the dollar.

As of now, the price of petrol stands at Rs264.61 per liter, following a cut of Rs7.54 on August 1. That drop came after four consecutive price hikes going back to mid-May, which added a total of Rs20 to the rate. Petrol mostly hits individual consumers—especially those using motorbikes, small cars, and rickshaws—so even minor changes tend to hit hard in working-class pockets.

Diesel, currently priced at Rs285.83 per liter, saw only a marginal reduction earlier this month—Rs1.48—but Rs1.48 had already climbed by nearly Rs27 per liter since mid-May. If the expected cut materializes, it could bring meaningful relief to the transport and agriculture sectors, both of which rely heavily on diesel to power everything from trucks and buses to tractors and tube wells.

Still, whether this translates into lower transport fares or cheaper vegetables is anyone’s guess. Historically, prices go up quickly and come down slowly, if at all.

There’s also word that kerosene and light diesel oil could become cheaper—by about Rs7 and Rs6 per liter, respectively. These fuels are widely used in rural areas and off-grid communities, so the impact, while less visible in urban centers, could still be significant.

The final prices will be announced late on August 15 and go into effect from midnight. Until then, these figures remain unofficial—but they’re based on hard numbers from the global market and prevailing tax rates.

For now, it’s another case of “wait and see.” But in a year where fuel prices have already swung up and down several times, few are holding their breath for lasting stability.

Published in Daily Pak, August 14th, 2025