The federal government has announced a new hike in petrol and diesel prices in Pakistan, effective from July 16, 2025, for the next fortnight.
As per the official press release by the Finance Division, the price of petrol has increased by Rs5.36, taking the new rate to Rs272.15 per litre, while high-speed diesel (HSD) has seen a sharper jump of Rs11.37, bringing the revised rate to Rs284.35 per litre. The rates for kerosene oil and light diesel oil remain unchanged.
Read More: Islamabad Shifts to US-Style Vehicle Registration System
This fuel price adjustment comes at a time when global crude oil prices are witnessing steady upward trends, placing additional fiscal pressure on oil-importing countries like Pakistan. The price increase is expected to influence inflation levels, as petrol is primarily consumed by motorcycles, rickshaws, and private vehicles, while diesel is vital for public transport, agricultural machinery, and goods transportation. As a result, transporters and logistic firms across the country are preparing to revise fares in response to the higher operational costs.
Despite the absence of general sales tax (GST) on petroleum products, the government continues to collect significant revenue through other levies. At present, nearly Rs98 per litre in total indirect taxation is being collected, which includes Petroleum Development Levy (PDL), Climate Support Levy (CSL), customs duty, and margins for oil marketing companies and dealers.
Read More: Punjab Job Portal Sees 1.8 Million Applications
Below is the updated price table for major petroleum products in Pakistan, effective from July 16, 2025:
| Product | Old Price (Rs/litre) | New Price (Rs/litre) | Change (Rs) |
|---|---|---|---|
| Petrol | 266.79 | 272.15 | +5.36 |
| High-Speed Diesel | 272.98 | 284.35 | +11.37 |
| Kerosene Oil | Unchanged | Unchanged | 0.00 |
| Light Diesel Oil | Unchanged | Unchanged | 0.00 |
The increase in fuel prices is likely to place an additional burden on middle- and lower-income households, affect transportation costs, and trigger secondary price hikes in essential commodities due to the rising cost of freight. With fuel taxation now a key fiscal tool, the public and industries alike are closely watching future developments in global oil prices and domestic economic policy.
