In Pakistan, a major drop in petroleum prices from 16 October 2025 is expected, bringing much-needed relief to millions of people struggling with high inflation and fuel costs. According to reliable industry sources, petrol prices may decrease by Rs. 6.10 per litre, while high-speed diesel could see a reduction of Rs. 1 per litre. This development comes as global crude oil prices continue to decline, directly benefiting Pakistan’s domestic fuel market.
Reports indicate that kerosene oil is likely to drop by Rs. 2.75 per litre, and light diesel oil may fall by Rs. 1.64 per litre. The Oil and Gas Regulatory Authority (OGRA) has already completed its working report and forwarded it to the Ministry of Finance for final approval. The ministry will issue an official notification after reviewing the proposal.
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However, experts warn that if the government decides to increase petroleum levy or taxes, the public may not experience the full benefit of these reductions. Currently, the government imposes a high levy on petroleum products, which has a direct impact on the final retail prices paid by consumers.
Since 1 October 2025, the ex-refinery price of petrol has dropped from Rs. 162.96 to Rs. 158.86 per litre, marking a 3.76% decrease. This is mainly due to the fall in global crude oil prices, which have been declining consistently in recent weeks.
In the international market, the price of petrol has gone down from $76.51 per barrel to $73.71 per barrel, showing a 3.66% reduction. Energy experts believe that if this downward trend continues, there could be further cuts in fuel prices during the next 15-day review cycle.
Major Drop Expected in Petroleum Prices – 16 October 2025
| Product Type | Expected Reduction (Rs/Litre) |
| Petrol | 6.10 |
| High-Speed Diesel | 1.00 |
| Kerosene Oil | 2.75 |
| Light Diesel Oil | 1.64 |
Global Market Price Comparison
| Period | Petrol Price (USD/Barrel) | Change (%) |
| 1 October 2025 | 76.51 | — |
| 16 October 2025 | 73.71 | -3.66% |
The decline in global oil prices has had a positive impact on Pakistan’s local petroleum market. If the government approves OGRA’s summary without changing current tax structures, this could be the first major fuel price relief for Pakistanis in many months. Lower fuel prices will not only reduce transportation and logistics costs but also help stabilize prices of essential goods, easing the burden on low and middle-income households.
Economists suggest that this potential drop in petroleum prices could help control inflation, boost purchasing power, and bring economic stability to the market. Transporters and traders have also welcomed the news, expecting improved profit margins and reduced operational expenses.
Final Words
If the government maintains the current tax rates, Pakistanis are likely to experience a Rs. 6 per litre drop in petrol prices from 16 October 2025. The downward movement in global crude oil prices is a positive signal for the country’s economy. If this trend continues, more relief can be expected in the upcoming fuel price reviews, offering much-needed comfort to citizens facing continuous financial pressure.
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