Islamabad, July 1, 2025: The federal government has announced a fresh increase in fuel prices, raising petrol by Rs8.36 and high-speed diesel by Rs10.39 per litre for the first half of July 2025, further straining household budgets already hit by inflation.
According to the Ministry of Finance, the new prices—effective immediately—set petrol at Rs266.79 per litre and high-speed diesel at Rs272.98. A formal notification has been issued to this effect.
Sources indicate that the hike follows a summary from the Oil and Gas Regulatory Authority (OGRA), which was approved by the finance minister in consultation with the Prime Minister. The decision was primarily driven by a surge in global crude oil prices and the continued depreciation of the Pakistani rupee.
Earlier projections had anticipated an increase of up to Rs11 per litre for petrol and Rs15 for diesel in this fortnightly review. The recent jump in international oil prices was triggered by a 12-day conflict between Israel and Iran, during which Brent crude surpassed $80 per barrel. However, prices dipped to around $67 after a ceasefire was brokered by former U.S. President Donald Trump. On Monday, Brent futures traded at $67.64, reflecting eased geopolitical tensions and the likelihood of an OPEC+ output hike.
Despite the slight global correction, local consumers remain deeply concerned. Citizens and transporters have expressed frustration, warning that the increase in fuel costs will inevitably lead to higher prices for essential goods and transport fares.
With inflation continuing to squeeze purchasing power, the latest petroleum price hike is likely to trigger a ripple effect across the economy, affecting everything from food prices to public transportation and worsening the financial distress of already struggling households.
