Pakistan may see another rise in petrol and diesel prices from December 16, following the Economic Coordination Committee’s (ECC) latest decision to increase profit margins for petroleum dealers and Oil Marketing Companies (OMCs) by 5% to 10%.
The move is intended to help fuel suppliers offset rising operational expenses—but it also signals a possible price hike for consumers already facing persistent inflation.
Why Petrol Prices May Increase (Featured Snippet Optimized)
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ECC approves 5–10% margin increase for dealers & OMCs
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Half the increase applies from December 10
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Remaining margin tied to fuel sector digitalization
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Higher operational costs expected to be passed on to consumers
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Final petrol price for December 16 will reflect new margins
ECC Decision: Why Margins Are Increasing
According to officials, the updated margins are necessary because fuel stations and supply companies have been struggling with rapidly rising business costs, including:
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Electricity bills
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Staff wages
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Transportation expenses
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Infrastructure and compliance costs
The adjustment aims to keep petrol pumps financially viable while ensuring uninterrupted national supply.
However, analysts caution that higher dealer margins typically result in higher per-liter prices, impacting millions of motorists and transport operators across Pakistan.
Digital Compliance Linked to Remaining Margin Increase
The ECC has tied the second half of the margin increase to the digitalization of Pakistan’s fuel distribution network.
The Petroleum Division has been instructed to:
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Begin nationwide digital monitoring
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Submit compliance progress reports by June 1, 2026
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Improve tracking of sales, taxation, and fuel movement
This shift is expected to improve transparency and reduce tax evasion within the oil sector.
Impact on Consumers: Inflation Pressure May Rise
Industry insiders warn that the higher margins will likely translate into increased petrol and diesel prices, adding further financial pressure on households and businesses.
Diesel, in particular, plays a major role in Pakistan’s economy, powering:
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Trucks and buses
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Rail transport
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Tractors and agricultural machinery
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Tube-wells used in farming
A rise in diesel cost typically pushes up prices of vegetables, grains, and essential commodities—intensifying inflation.
Current Petrol Prices in Pakistan (December 2025)
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Petrol: Rs 263.45 per liter
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High-Speed Diesel (HSD): Rs 279.65 per liter
Last month, the government provided a brief relief by cutting prices slightly, but experts believe the latest margin increase may reverse that trend.
How Much Tax Do Pakistanis Pay on Fuel?
As of December 2025, taxes and duties continue to make up a large portion of fuel prices:
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Petrol: Rs 96.28 per liter (≈ 37% tax burden)
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Diesel: Rs 94.92 per liter (≈ 34% tax burden)
These include petroleum levies, customs duties, and climate-related surcharges—further tightening budgets for ordinary citizens.
ECC Meeting Highlights
Besides fuel pricing, the ECC also reviewed several economic matters, including:
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Circular debt management in the energy sector
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Possible changes in car import policies
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Funding approvals for multiple government departments
These discussions underline the government’s efforts to stabilize Pakistan’s broader economic landscape.
Final Outlook
With the ECC’s approval of higher dealer margins, Pakistan is preparing for a possible petrol price increase from December 16.
The final fuel prices will be announced closer to the date, but early indicators suggest that consumers may need to brace for another uptick in transport and commodity costs.
