ISLAMABAD:
The government on Monday reduced the price of diesel by Rs14 per liter in line with fluctuations in global oil prices, with effect from December 16.
However, the government has maintained the existing petrol prices. After the recent reduction, the diesel will be sold at Rs 265.65 per liter against the old price of Rs 279.65 per litre, bringing down Rs 14 per litre.
However, the price of petrol has been maintained at Rs 263.45. per litre.
High-speed diesel is widely used in the transport and agricultural sectors; as a result, any fluctuation in price has a direct impact on the cost of living for both consumers and farmers.
The significant reduction of Rs14 per liter in diesel price is therefore expected to be welcomed by the public as it may help ease inflationary pressure on consumers.
Gasoline, used primarily in motorcycles and cars, has not seen any reduction. As such, the government’s decision offers little relief to motorists as petrol prices remain unchanged.
Petrol also serves as an alternative to CNG and its consumption has increased, especially in Punjab, following the ban on indigenous gas at CNG outlets. CNG stations in the province now rely on imported gas, which is considerably more expensive.
Based on the prevailing tax rates, the oil industry had anticipated a reduction of up to Rs 11.85 per litre, or about 4.2%, in the price of high-speed diesel, depending on final calculations. Petrol prices were expected to fall by around 36 paisa per litres, or 0.1%.
On December 9, the Economic Coordination Committee (ECC) of the Cabinet approved an additional margin of Rs 2.56 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 taxes and climate support taxes. During the first fortnight of December, consumers paid an oil tax of Rs 78 per liter on diesel and Rs 82 per liter on petrol and high-octane products, which included a climate subsidy tax of Rs 2.50 per litre.
The government collected about Rs 1.161 trillion through the oil tax alone in the 2024-25 fiscal year and expects collections to increase by about 27% to Rs 1.470 trillion during the current fiscal year.
LNG prices
The Oil and Gas Regulatory Authority (OGRA) on Monday announced a reduction in regasified liquefied natural gas (RLNG) prices for December.
According to OGRA, the RLNG transmission price of Sui Northern Gas Pipelines Limited (SNGPL) is 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 and $0.5716 (4.61%) in distribution prices compared to November 2025.
For Sui Southern Gas Company Limited (SSGCL), OGRA has set the RLNG transmission price at $9.4741 per MMBtu and the distribution price at $10.7767 per MMBtu. These figures represent a decrease of $0.5911 (5.87%) in transmission and $0.6753 (5.90%) in distribution from the previous month.
OGRA said the reduction in RLNG prices is in line with the federal government’s policy guidelines and is primarily the result of a drop in the delivered ex-ship (DES) price.
