Govt hikes petrol price by Rs2.43, high-speed diesel by Rs3.02
Government Increases Petrol and Diesel Prices for November 2025
In a late-night announcement on Friday, the federal government of Pakistan approved a fresh hike in fuel prices for the next fortnight, citing fluctuations in international oil markets and recommendations from the Oil and Gas Regulatory Authority (OGRA).
According to the latest notification issued by the Ministry of Finance, the price of petrol has been increased by Rs2.43 per litre, bringing it to Rs265.45, while high-speed diesel (HSD) has gone up by Rs3.02 per litre, now priced at Rs278.44.
This revision reflects the government’s periodic price adjustment mechanism, which tracks global oil price movements and currency exchange rates to determine domestic rates.
Impact on Transport and Inflation
The hike in diesel prices is expected to have a more significant inflationary impact since HSD fuels the majority of heavy transport vehicles, trains, tractors, and tube-wells. Rising diesel costs directly affect freight charges, which in turn influence the prices of essential commodities such as vegetables and food items.
Meanwhile, the increase in petrol prices will directly affect the middle and lower-middle income groups, as petrol is predominantly used in private cars, motorcycles, and rickshaws, forming a major component of household expenses for daily commuters.
LPG Price Reduced
In contrast to the petrol and diesel hike, OGRA announced a Rs5.88 per kilogram reduction in LPG (liquefied petroleum gas) prices, lowering the consumer price from Rs207.49 to Rs201.60 per kg. The price of an 11.8 kg domestic cylinder now stands at Rs2,378.89, down by Rs69.44 compared to October.
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Breakdown of Fuel Taxes and Levies
Despite the general sales tax (GST) being set at zero, the government continues to collect substantial revenue through the petroleum levy and climate support levy, amounting to Rs80.52 per litre on petrol and Rs79.50 per litre on diesel.
Additionally, customs duties of around Rs17–18 per litre are applied to both locally produced and imported fuels, along with distribution and dealer margins averaging Rs17 per litre.
Petrol and diesel remain Pakistan’s most consumed fuels, with monthly usage between 700,000 to 800,000 tonnes, far exceeding that of kerosene, which averages just 10,000 tonnes per month.
Revenue Collection from Petroleum Levies
During FY2025, petroleum levy collections reached Rs1.161 trillion, with projections to rise by 27% to Rs1.47 trillion in the current fiscal year, reflecting the government’s continued reliance on petroleum-based revenue despite economic pressures.
The latest fuel price adjustment underscores the challenges faced by both the government and consumers as global market volatility continues to affect local fuel costs and inflation.
