The federal government on Monday announced that petrol prices will remain unchanged at Rs263.45 per litre for the next fortnight, while the price of high-speed diesel (HSD) has been reduced by Rs14 per litre, following recommendations from the Oil and Gas Regulatory Authority (Ogra) and relevant ministries.
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According to a notification issued by the Petroleum Division, the revised prices will take effect from December 16. High-speed diesel will now be available at Rs265.65 per litre for the next 15 days, down from the previous price of Rs279.65 per litre.
Ogra had earlier dismissed reports suggesting a reduction of up to Rs12 per litre in fuel prices, describing them as “purely speculative” and unrelated to any formal pricing process. In a statement issued on December 13, the regulator clarified that petroleum prices are calculated strictly in line with federal government directives and within the officially notified schedule.
Petrol is primarily used in private vehicles, motorcycles, rickshaws, and small transport, and its price has a direct impact on the budgets of middle- and lower-middle-income households. Any increase or relief in petrol prices significantly affects daily commuting costs.
High-speed diesel, on the other hand, is widely used in the transport and agriculture sectors. Its pricing is considered inflation-sensitive as it directly influences the cost of transporting goods, public transport fares, and agricultural production. Diesel-powered machinery such as trucks, buses, trains, tractors, tube wells, and threshers plays a key role in supply chains.
Economists note that a reduction in diesel prices can help ease inflationary pressure, particularly by lowering transportation costs and reducing prices of vegetables and other essential food items.
