Petrol and Diesel Prices Breakdown: Ex-Refinery Costs Fall, Fuel Prices Ease

Last night, the federal government reduced fuel prices for the new fortnight beginning 1 December to 15 December 2025, lowering both petrol and diesel rates in its latest revision. 

Petrol Price Breakdown for the Latest Fortnight

Petrol prices have been cut by Rs. 2 per litre, bringing the new rate to Rs. 263.45, down from Rs. 265.45 in the previous revision. 

The price reduction is mainly due to a decline in the ex-refinery component, which fell from Rs. 158.67 to Rs. 156.62, a drop of Rs. 2.05 or 1.3%. 

At the same time, all other elements, including the petroleum levy, margins, and IFEM, remained largely unchanged. 

A minimal increase of Rs. 0.05 in the IFEM had no meaningful impact on the final consumer price, keeping the overall adjustment solely driven by refinery-side softness.

Diesel Price Breakdown for the Latest Fortnight

Diesel prices also saw a notable downward revision, with a reduction of Rs. 4.79 per litre, bringing the new price to Rs. 279.65 from Rs. 284.44 earlier. 

Similar to petrol, the decline in diesel prices stems almost entirely from the fall in the ex-refinery price, which dropped by Rs. 6.56, sliding from Rs. 185.66 to Rs. 179.10, a decrease of 3.5%. 

Other components, such as the petroleum levy, OMC margin, and dealer margin, remained unchanged, while IFEM rose from Rs. 4.31 to Rs. 6.13, though the larger decline in refinery costs offset this increase. 

An extra margin of Rs. 0.05 was removed during this period, but its impact on the final price was negligible.

In conclusion, the drop in the latest fuel prices is driven primarily by softer international prices reflected in lower ex-refinery rates.