In a relief for consumers and transporters, the federal government on Friday announced a reduction in diesel prices by Rs12.84 per litre.

The revised rates will come into effect from August 16, 2025, according to an official notification from the Ministry of Finance.

“The government has decided to revise petroleum product prices for the fortnight starting August 16, 2025, following OGRA’s recommendations and inputs from concerned ministries,” the notification stated.

As a result, the price of high-speed diesel has fallen from Rs285.83 to Rs272.99 per litre. Similarly, the price of superior kerosene oil has been reduced from Rs185.46 to Rs178.27 per litre. Meanwhile, petrol prices will remain steady at Rs264.61 per litre for the next fortnight.

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Petrol is mainly used in private transport, small vehicles, two-wheelers, and rickshaws. Any changes in petrol prices directly affect the budgets of middle and lower-middle-class families who rely on it for daily commuting.

On the other hand, diesel price reduction has a broader impact on the economy. High-speed diesel is mostly consumed by heavy vehicles, trucks, buses, trains, and agricultural machinery such as tractors, tube wells, and threshers. Its cost influences the prices of vegetables, food items, and essential commodities because transportation and farming costs largely depend on diesel.

Economists suggest that this diesel price reduction will slightly ease inflationary pressures and provide relief to both the transport sector and ordinary consumers. However, petrol prices staying constant means commuters using smaller vehicles will not see immediate savings.