ISLAMABAD: Consumers are likely to see a major Rs11.85 per litre reduction in the price of high-speed diesel (HSD) from December 16, alongside notable declines in other key petroleum products used across transport, agriculture, industry, and households.
According to industry sources, the ex-depot price of HSD is expected to fall from Rs279.65 to Rs267.80 per litre, reflecting a decline of over 4%. This large cut is expected to bring immediate relief to farmers at peak crop season and to the transport sector, which heavily influences market prices of essential goods.
Petrol (PMG), mainly used in private cars and motorcycles, is projected to see a marginal decrease of Rs0.36 per litre, bringing its expected price to Rs263.09. Although modest, the drop will still benefit millions of daily commuters.
Kerosene — the primary fuel for cooking and heating in low-income and off-grid households — is likely to decline by Rs11.70 per litre, with the projected price falling to Rs181.16. This reduction holds importance for remote communities that rely on kerosene as an affordable energy source.
Light Diesel Oil (LDO), used in small industries, tube wells, and generators, is expected to drop by Rs10.01 per litre, lowering the projected price to Rs153.76. The decrease will help reduce operating costs for small manufacturers and rural energy users.
According to the estimates, ex-refinery prices, which determine what oil marketing companies pay refineries, are set to fall sharply in line with the decline in international oil markets. Petrol’s ex-refinery price is projected to slip from Rs 156.62 per litre to Rs 156.26 per litre, a small reduction of 36 paisa. In contrast, high-speed diesel is expected to drop from Rs 179.10 to Rs 167.15 per litre, reflecting a sizeable reduction of Rs 11.95 per litre. Kerosene oil is likely to decrease from Rs 164.26 to Rs 152.56 per litre, a cut of Rs 11.70 per litre, while LDO may fall from Rs 142.21 to Rs 132.20 per litre, a reduction of Rs 10.01 per litre.
These reductions at the refinery level indicate a broader softening of international oil prices, contributing to the projected relief for consumers at the pump, said the sources.
The industry sources also said that for consumers, the biggest impact will be felt through the reduction in diesel prices. A cut of nearly Rs 12 per litre is expected to lower transportation and agriculture costs, which may help ease inflationary pressure on essential commodities in the coming weeks. Households in remote regions dependent on kerosene oil for heating and cooking will also receive substantial relief due to the Rs 11.70 reduction. Small-scale industries and commercial users relying on LDO for operations and backup power generation are likewise set to benefit from the lower prices.
These estimated cuts, driven by lower international petroleum prices, represent a broad relief package for consumers and sectors across the economy. The revised prices will take effect after government approval on December 16.
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