Fuel Price Shock: Govt Raises Petrol Price by Rs 8.36 per Litre

Islamabad(Mudassar Iqbal)-In a significant move, the Finance Division announced a Rs 8.36 per litre increase in petrol prices for the next fortnight, starting July 1, citing fluctuations in international crude oil prices. This decision comes on the heels of a previous price hike on June 16, 2025, when petrol prices rose by Rs 4.80 per litre and high-speed diesel by Rs 7.95 per litre.”

With the latest increase, petrol will now cost Rs266.79 per litre, up from Rs258.43. The price of high-speed diesel was also raised by Rs10.39, bringing it to Rs272.98 from Rs262.59 per litre, according to a notification.

International oil prices edged down on Monday as investors weighed easing Middle East risks and a possible OPEC+ output increase in August.

Both Brent and US crude oil benchmarks posted their biggest weekly declines since March 2023.

In another development, according to sources, the government has added a carbon levy of Rs2.50 per litre to the new fuel prices. The levy on petrol has been reduced to Rs75.52 per litre, while the levy on high-speed diesel has been set at Rs74.51 per litre.

The hike in the petroleum products prices comes a day after the Oil and Gas Regulatory Authority (Ogra) notified a 50% increase in fixed gas charges for domestic consumers for the fiscal year 2025-26, effective from July 1.

Petrol, Diesel Prices Hiked Again: Petrol Up by Rs4.80, Diesel by Rs7.95 Per Litre

Petrol powers small vehicles, rickshaws, and bikes, making price hikes especially hard on middle- and lower-income households who depend on it for daily commuting.

In contrast, a substantial portion of the transport sector depends on high-speed diesel. Its price is considered inflationary due to its widespread use in trucks, buses, trains, and farm machinery, such as tractors and tube wells.

The increased cost of high-speed diesel directly contributes to the rising prices of vegetables and other essential food items.