In another blow to inflation-stricken consumers, the federal government of Pakistan has once again increased petrol and diesel prices, reflecting the ongoing surge in global crude oil markets.
According to a late-night notification issued by the Finance Division on Tuesday, fuel prices have been revised as follows:
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Petrol: Increased by Rs5.36, now priced at Rs272.15/litre (up from Rs266.79)
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High-Speed Diesel (HSD): Increased by Rs11.37, now priced at Rs284.35/litre (up from Rs272.98)
These new rates will be effective from July 16, 2025, for the next 15 days.
Reason Behind the Price Hike
The government attributed the increase to the fluctuations in international oil prices, which have been on the rise due to global economic uncertainties and geopolitical tensions.
As Pakistan imports nearly 85% of its petroleum needs, any movement in global crude markets or exchange rates has a direct impact on domestic fuel prices.
Previous Price Hike – July 1
This marks the second fuel price increase this month. On July 1, petrol and diesel prices were also raised:
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Petrol: Up by Rs8.36
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Diesel: Up by Rs10.39
At that time, the hike was attributed to market volatility amid the 12-day Iran-Israel conflict, which disrupted supply chains and raised concerns about oil availability in the Middle East.
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Impact on the Public
This fuel price hike will directly affect:
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Transportation costs, including fares for public transport
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Inflation, as higher diesel prices increase the cost of goods delivery
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Household budgets, already strained by rising utility bills and food prices
Fortnightly Fuel Price Mechanism
Fuel prices in Pakistan are reviewed every 15 days by the Oil and Gas Regulatory Authority (OGRA). Adjustments are based on:
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Global oil prices
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Exchange rate between Pakistani Rupee and US Dollar
