ISLAMABAD:
On Monday, the government reduced the price of diesel by Rs 14 per liter, in line with the fluctuation in global oil prices, with effect from December 16.
However, the government has maintained the current oil prices. After the recent reduction, diesel will be sold at Rs 265.65 per liter against the previous price of Rs 279.65 per litre, registering a cut of Rs 14 per litre.
However, the price of petrol has remained at Rs 263.45 per litre.
High-speed diesel is widely used in the transportation and agriculture sectors; As a result, any fluctuation in its price has a direct influence on the cost of living for both consumers and farmers.
The substantial reduction of Rs 14 per liter in diesel price is therefore expected to be welcomed by the public as it may help ease inflationary pressures for consumers.
Gasoline, which is mainly used in motorcycles and cars, has not seen any reduction. Therefore, the government’s decision offers little relief to motorists, as the price of gasoline remains unchanged.
Petrol also serves as an alternative to CNG and its consumption has increased, particularly in Punjab, following the ban on indigenous gas in CNG outlets. The province’s CNG stations now rely on imported gas, which is significantly more expensive.
Based on prevailing tax rates, the oil industry had projected a reduction of up to Rs 11.85 per liter, or about 4.2%, in the price of high-speed diesel, according to final calculations. Petrol prices were projected to decline by around 36 paise per litre, 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 distributors.
Although the General Sales Tax (GST) remains zero for all petroleum products, consumers continue to pay higher taxes on petroleum and climate support. During the first half of December, consumers paid a petroleum tax of Rs 78 per liter for diesel and Rs 82 per liter for petrol and high-octane products, which included a climate support tax of Rs 2.50 per litre.
The government recovered approximately Rs 1,161 trillion through the oil tax alone in fiscal year 2024-25 and expects collections to increase by approximately 27% to Rs 1,470 trillion during the current fiscal year.
LNG prices
The Oil and Gas Regulatory Authority (OGRA) notified this Monday a reduction in the prices of regasified liquefied natural gas (LNG) for December.
According to OGRA, the RLNG transmission price for Sui Northern Gas Pipelines Limited (SNGPL) has been fixed 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 prices 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 compared to the previous month.
OGRA said the reduction in RLNG prices is in line with the federal government’s policy guidelines and is primarily a result of a decrease in the Delivered Ex-Ship (DES) price.
