In a move aimed at providing economic relief, the federal government has announced a substantial reduction in the prices of two key petroleum products. The new, lower rates are set to take effect from the start of the upcoming month.
Details of the Price Reduction
The Ministry of Finance issued the official notification regarding the revised prices. According to the notification, the price of light diesel oil has been decreased by Rs 7.83 per litre. This brings the new price down to Rs 168.68 per litre from the previous rate of Rs 176.51.
Similarly, consumers of kerosene oil will also benefit from this decision. The price of kerosene oil has been cut by Rs 4.12 per litre. The new price for kerosene oil will be Rs 171.79 per litre, reduced from Rs 175.91.
It is important to note that this price adjustment is specifically for light diesel oil and kerosene oil. The prices of other major petroleum products, including petrol and high-speed diesel (HSD), have not been changed in this particular notification and will remain at their current levels.
Impact on Consumers and the Economy
This reduction is expected to have a positive impact on several sectors of the economy. Light diesel oil is commonly used in agricultural machinery, such as tube wells and tractors, as well as in some industrial processes and smaller transport vehicles. A lower price directly reduces the operational costs for farmers and small-scale industries, potentially leading to lower production costs for agricultural goods.
Kerosene oil, although its use has diminished in urban areas due to the expansion of natural gas networks, remains a crucial fuel source for lighting and heating in many remote and off-grid regions of Pakistan. The price cut will provide much-needed financial relief to low-income households in these areas who rely on kerosene for their daily energy needs, especially during the winter months.
Government's Pricing Mechanism
The government of Pakistan reviews and adjusts petroleum product prices every two weeks, in line with international oil market fluctuations and the exchange rate of the Pakistani rupee. This bi-monthly review is a standard procedure to align domestic prices with global trends. The decision to reduce prices for these two specific products indicates a favorable movement in their international prices or other cost components in the current fortnight.
By passing on the benefit of lower international costs to consumers, the government aims to ease inflationary pressures and support economic activities that depend on these fuels. Such measures are closely watched by economists and the public alike, as energy costs are a significant component of the overall cost of living and doing business in the country.
The notification from the finance ministry makes it clear that the new prices are effective from December 1, 2025. All oil marketing companies (OMCs) and dealers across the country are mandated to ensure the revised rates are implemented promptly at all retail outlets.
