Consumers are expected to see a massive relief in fuel prices from March 16, 2025, as global oil prices decline. The ex-depot price of petrol is likely to drop by Rs14.16 per litre, bringing it down to Rs241.47 from Rs255.63.

The price of diesel is also projected to decrease by Rs8.70 per litre, lowering it to Rs249.94 from Rs258.64. Diesel plays a crucial role in transport and agriculture, especially with the crop harvesting season approaching.

Consumers of kerosene oil can expect a price reduction of Rs10.33 per litre, dropping from Rs168.12 to Rs157.79. Kerosene oil, often called the poor man’s fuel, is widely used for cooking in remote areas where LPG is unavailable. The Pakistan Army is also a key consumer in the northern regions. Meanwhile, the price of light diesel oil, which is used in industries, is expected to fall by Rs7.12 per litre, reducing it to Rs146.22 from Rs153.34.

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Several factors influence petroleum prices, including global oil rates, government taxes, inland freight equalisation margin, exchange rates and the premium on petrol imports. Currently, the import premium stands at $6.6 per barrel. While petroleum prices are decreasing, LNG prices are rising.

The Oil and Gas Regulatory Authority has announced a slight increase in LNG consumer prices from March 1, 2025, due to higher import costs. The price for SNGPL consumers has increased by 0.37% to $12.94 per mmBtu, while SSGC consumers will pay 0.42% more at $12.74 per mmBtu. Pakistan imports LNG from Qatar under a long-term contract.