Diesel Petrol Prices Hiked by Rs11.37 and Rs5.36
The hike in diesel petrol prices will significantly affect the economy, with the cost of essential goods and services likely to increase, further burdening the already struggling middle- and lower-income households, as the government continues to adjust fuel prices in response to global market trends.
The federal government has raised petrol and diesel prices by Rs5.36 and Rs11.37 per litre respectively, citing fluctuating international market trends, with petrol now costing Rs272.15 per litre and high-speed diesel costing Rs284.35 per litre.
The price hike will take effect immediately for the next 15 days, impacting millions of motorists and transport operators across the country. This is the latest in a series of fuel price hikes, with the previous increase attributed to the Iran-Israel conflict. The government reviews fuel prices every fortnight, making adjustments based on changes in international oil prices and the local currency exchange rate.
The price of High-Speed Diesel (HSD) has increased by Rs11.37 per litre for the fortnight of July 16-31, 2025, due to an exchange rate adjustment granted to Pakistan State Oil (PSO). The exchange rate adjustment accounts for approximately Rs6.90 per litre of the hike, constituting about 60% of the total increase. The Inland Freight Equalization Margin (IFEM) on HSD has also jumped to Rs6.04 per litre, a significant increase from Rs2.09 per litre in the previous fortnight.
The federal government has increased the prices of petrol and high-speed diesel (HSD) by Rs5.36 per litre and Rs11.37 per litre respectively for the next fortnight. The new prices are Rs272.15 per litre for petrol and Rs284.35 per litre for HSD. The increase is based on recommendations by the Oil and Gas Regulatory Authority (Ogra) and concerned ministries. The price of kerosene and light diesel oil remains unchanged.
The increase in fuel prices is expected to have a direct impact on the budgets of middle- and lower-income households, and is considered highly inflationary, influencing the cost of food and other essential goods. The government is collecting close to Rs98 per litre in total levies on both petrol and diesel, despite zero general sales tax (GST) on petroleum products.