The federal government on Thursday night slashed the price of petrol by Rs7.54 per litre while raising that of high-speed diesel (HSD) by Rs1.48 per litre for the next fortnight.

Widely used in motorcycles, rickshaws, and private vehicles, petrol has a direct impact on the budgets of middle- and lower-income households. HSD fuels heavy transport, agricultural machinery, and trains. Its price is considered highly inflationary, influencing the cost of food and other essential goods.

In a press release issued today, the Finance Division stated that the price of petrol was set at Rs264.61 per litre and that of HSD at Rs285.83 per litre.

It added that it decided on these new rates “following a review of prevailing international market trends” and upon the recommendations from the Oil and Gas Regulatory Authority (Ogra) and the relevant ministries.

Sources had previously said that after four consecutive hikes, petrol and diesel prices were expected to fall by about Rs9 and Rs3.50 per litre, owing to lower international oil prices and reduced import premiums.

Based on prevailing tax rates, the ex-depot price of petrol was estimated to decline by around Rs9 per litre (3.3 per cent), while HSD was expected to see a reduction of Rs3.50 per litre (1.3pc), depending on final cost calculations.

According to informed sources, global oil prices softened slightly over the past fortnight, while the import premium on petrol dropped by nearly one-third — from about $9.70 to $6.75 per barrel — as regional tensions eased.

The government is currently collecting about Rs98 per litre on both petrol and diesel through various levies, despite maintaining a zero rate of general sales tax (GST) on all petroleum products. This includes Rs77.01 per litre on diesel and Rs78.02 per litre on petrol and high-octane products as petroleum levy and climate support levy (CSL), of which Rs2.25 per litre is attributed to CSL alone.

In addition, Rs20-21 per litre is being charged as customs duty on both fuels, regardless of whether they are imported or locally refined. Distribution and dealer margins account for another Rs17 per litre.

Petrol and HSD remain the government’s main petroleum revenue sources, with combined monthly sales of around 700,000-800,000 tonnes. In contrast, kerosene demand stands at just 10,000 tonnes per month. The government collected Rs1.161 trillion through petroleum levy in 2024-25 and projects a 27pc increase — reaching Rs1.470tr — in the current fiscal year.

Ogra slashes LPG price by Rs17.7 per kg

Earlier, Ogra reduced the price of liquefied petroleum gas (LPG) by Rs17.7 per kilogramme.

Last month, Ogra notified a decrease in the price of LPG by Rs7.51 per kg or 3.1 per cent for July. The new price for 11.8kg cylinder was Rs2,750.6 for July, against Rs2,838.31 for June. It said that the LPG producer price was linked with Saudi Aramco-CP and US dollar exchange rate.

In a notification from the regulator today, available with Dawn.com, Ogra set the new consumer price for an 11.8kg cylinder at Rs2,541.36 for August, compared to Rs2,750.6 last month. The maximum consumer price for LPG per kg was set at Rs215.37.

These prices will go into effect on August 1 (Friday).

The prices “shall be regulated as the maximum LPG price at all levels of the supply chain for indigenous as well as imported LPG”, Ogra said.

The notification also showed that the new producer price for an 11.8kg cylinder stood at Rs2,054.02.

This is the third month in a row where LPG prices have fallen, with an 11.8kg cylinder costing Rs2,892.91 in May, Rs2,838.31 in June and Rs2,750.6 in July.

Earlier this month, a parliamentary panel expressed concern over the “poor regulatory environment” in the petroleum sector, observing that lives were in danger after an official disclosure that almost half of a total of 2,000 bowsers handling LPG have not been registered anywhere.

Of an estimated 2,000 bowsers in operation, only 800 are registered with the Department of Explosives and just 247 have licences issued by Ogra. This points to a significant oversight lapse, the participants observed.

Oil & Gas Development Company Limited (PSX: OGDC) has announced a new oil discovery at the Chakar-1 exploratory well in Tando Allah Yar district, Sindh.

The discovery was made under the Tando Allah Yar Exploration License (TAY E.L), where OGDCL holds a 95 percent operating interest, with Government Holdings (Private) Limited (GHPL) as a 5 percent carried-interest partner.

According to the stock filing, drilling at Chakar-1 began on June 2, 2025, and reached a total depth of 1,926 meters into the Upper Shale of the Lower Goru Formation.

Based on wireline log interpretation and Reservoir Evaluation Services (RES) data, a Drill Stem Test (DST) was conducted in the B-Sand formation, followed by testing using an Electrical Submersible Pump (ESP).

The well flowed at a rate of 275 barrels of oil per day (BOPD) through a 32/64-inch choke at a wellhead flowing pressure of 400 psi. Additionally, oil was encountered during RES formation testing in the Lower Ranikot Formation, where a second DST with ESP is currently underway to evaluate its hydrocarbon potential.

Prime Minister Shehbaz Sharif on Wednesday marked a major reform with the approval of the National Artificial Intelligence (AI) Policy 2025.

The prime minister chaired a key meeting of the Federal Cabinet, where the Federal Cabinet unanimously approved the National AI Policy 2025, designed to create a complete AI ecosystem in Pakistan. The policy aims to democratize access to artificial intelligence, enhance public services, and open up new employment and innovation avenues.

“Our youth are Pakistan’s greatest asset. Providing them with education, skills, and equal opportunities in AI is a top priority,” stated PM Shehbaz Sharif.

The AI policy outlines training 1 million AI professionals by 2030, establishing an AI Innovation Fund and AI Venture Fund to boost private sector involvement, creation of 50,000 AI-driven civic projects and 1,000 local AI products in the next five years, distribution of 3,000 annual AI scholarships and facilitation of 1,000 research projects, inclusion of women and differently-abled individuals through accessible education and financing, strengthening cybersecurity and national data security protocols, promoting global partnerships and compliance with international AI regulations.

However, an AI Council and a comprehensive Master Plan & Action Matrix will oversee the policy’s implementation.

The prime minister applauded the Ministry of IT and allied institutions for their timely efforts, saying, “AI will not only modernize our economy but also enhance productivity across agriculture, public services, and governance.”