KARACHI: Pakistan on Tuesday lowered the retail price of high-speed diesel while keeping petrol prices unchanged for the next two weeks, offering limited relief to transporters and businesses as the country navigates inflation pressures and economic reforms.
Fuel prices are closely watched in Pakistan because diesel is widely used in freight transport, agriculture and power generation, meaning changes can quickly feed into food prices and overall inflation. Petrol, meanwhile, primarily affects private motorists and urban consumers. The government revises fuel prices every fortnight, based largely on global oil prices, exchange rates and taxes.
The move comes as Pakistan seeks to balance inflation control with fiscal discipline under an International Monetary Fund loan program, which limits the government’s ability to offer broad fuel subsidies. Energy pricing has been a sensitive political issue in the country, where fuel costs directly affect household budgets and business expenses.
“The government has revised the prices of the petroleum products based on recommendations of OGRA,” the petroleum division said in a notification issued late Monday, referring to the regulator.
According to the notification, the price of high-speed diesel was reduced by 14 rupees per liter, bringing it down to 265.65 rupees per liter, effective from today, Dec. 16. The price of petrol, officially termed motor spirit, was left unchanged at 263.45 rupees per liter for the same period.
Diesel accounts for a large share of fuel consumption in Pakistan and is critical for trucking, farming machinery and inter-city transport. Analysts say even modest reductions can help contain transport costs, though the impact depends on whether savings are passed on to consumers.
Pakistan has been adjusting fuel prices regularly since removing blanket subsidies in recent years as part of wider economic reforms aimed at reducing budget deficits and stabilizing the economy. The government has repeatedly said that energy pricing decisions must reflect market conditions while protecting public finances.











