Starting August 1, 2025, fuel prices in Pakistan are expected to decrease, offering slight relief to the public. Petrol prices may go down by Rs6.82 per liter, while diesel prices could see a Rs1.68 reduction, according to Arif Habib Limited (AHL).
Following the expected change, the new petrol price is likely to be Rs265.33 per liter, and diesel may be set at Rs282.67 per liter. These adjustments are linked to a fall in ex-refinery prices, which has given the government space to reintroduce a Rs2.50 per liter petroleum levy on both fuels.
According to AHL’s report, the average price of Brent crude oil during the second half of July stood at $68.75 per barrel. Meanwhile, the WTI average price was recorded at $65.98 per barrel, showing a consistent trend in global oil markets.
Additionally, the exchange rate averaged Rs284.25 per US dollar during this period, with only a slight 0.1% fluctuation from the earlier phase. This minor change in the currency rate also helped balance the local fuel pricing formula.
Although this price drop provides short-term relief, the re-imposition of the petroleum levy could affect future fuel expenses. Consumers may still feel the impact as fuel costs continue to depend on global oil prices and currency movements.