The federal government of Pakistan has raised the prices of petroleum products by up to Rs7.95 per litre, according to an official notification issued by the Finance Division late Sunday night. The revised prices went into effect immediately from June 16, reflecting the impact of rising global oil rates and exchange rate pressures on domestic fuel pricing.
Breakdown of Price Increases
Based on recommendations from the Oil and Gas Regulatory Authority (OGRA) and related ministries, the latest increase affects both petrol and high-speed diesel (HSD):
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Petrol: Increased by Rs4.80/litre, from Rs253.63 to Rs258.43/litre
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High-Speed Diesel (HSD): Increased by Rs7.95/litre, from Rs254.64 to Rs262.59/litre
This adjustment marks yet another in a series of fortnightly reviews, which the government conducts to align domestic prices with international oil market movements and local currency performance.
Why Prices Were Increased
The government cited international market trends as the primary reason behind the upward revision, pointing to higher global crude oil prices and associated shipping costs. Additionally, volatility in the exchange rate of the Pakistani rupee against the US dollar plays a significant role in determining final consumer fuel prices.
Fuel pricing in Pakistan follows a bi-monthly revision system, wherein OGRA submits price proposals after analyzing:
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Brent crude benchmarks
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Import parity prices
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Premiums on international purchases
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Exchange rate fluctuations
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Economic Impact and Public Sentiment
This latest hike is expected to further strain household budgets and add to transportation and logistics costs, which will likely fuel inflation—already a critical concern for Pakistan’s economy in 2025.
Public sentiment remains tense, particularly as:
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Essential commodities often see price increases after fuel adjustments.
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Transport unions may revise fares upward.
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Farmers and freight operators, heavily reliant on diesel, bear the brunt of HSD hikes.
The rise in diesel cost is particularly notable, given its widespread use in agriculture, cargo transport, and power generation.
Looking Ahead
As Pakistan continues to navigate IMF-led fiscal adjustments, high debt servicing, and external account vulnerabilities, petroleum prices will remain a sensitive and politically charged issue.
The Finance Ministry has not indicated whether any subsidy relief or price stabilization measures are under consideration. Meanwhile, analysts suggest fuel prices may continue rising if tensions in the Middle East, oil supply constraints, or further rupee devaluation persist.