ISLAMABAD: Consumers across Pakistan are set for significant relief at the pump, with a major reduction in petroleum product prices expected to take effect from December 16, 2025, according to preliminary government documents.
Media reports citing sources within the relevant department indicate that a substantial price cut has been proposed in an initial working paper. The most dramatic decrease is expected for diesel, with a projected reduction of approximately Rs. 11.85 per liter. Kerosene oil may see a cut of Rs. 11.70 per liter, and light diesel oil could become cheaper by Rs. 10.10 per liter. Petrol, however, is expected to see a much smaller decrease of about 36 paise per liter.
The final price summary will be forwarded by the Oil and Gas Regulatory Authority (OGRA) for approval on December 15. Following the Prime Minister’s consent, the Petroleum Division will issue an official notification for the new prices, which will remain in effect for the following fortnight.
Alongside the price cut details, a breakdown of the substantial tax burden on fuel has also emerged. Sources from the Petroleum Division revealed that taxes constitute a significant portion of the retail price. Approximately 37% of the price per liter of petrol is tax, amounting to roughly Rs. 96.28. For diesel, taxes make up about 34%, equating to Rs. 94.92 per liter. These levies include components like customs duty, petroleum levy, and the climate change levy.
The anticipated reduction, if approved, will provide broad economic relief, particularly to the transport and agricultural sectors heavily reliant on diesel, potentially lowering costs for goods and services.
Meanwhile Pakistan and the Asian Development Bank have finalized and signed development agreements totaling 257 million dollars.
The agreements were signed by Secretary Economic Affairs Muhammad Hameer Karim and ADB Country Director Emma Fan, while the Punjab Secretary of School Education and the Secretary of Specialized Healthcare signed on behalf of the Punjab government.
According to the spokesperson of the Ministry of Economic Affairs, two major programs will be launched to improve the education and health sectors in Punjab.
The ADB has approved a 107 million dollar STEM education program for the province.
