Another Increased in Petrol Price in Pakistan:

When the government announced a significant increase in the petrol price in Pakistan for gasoline and diesel, Pakistanis once again woke up to higher fuel prices. Beginning on June 16, the price of gasoline increased by Rs4.80 per litre in Pakistan, while the price of diesel increased by Rs7.95 per litre.

Late on Sunday evening, the Finance Division formally announced the new tariffs, claiming that they are based on suggestions from the Oil and Gas Regulatory Authority (OGRA) and other relevant ministries.

What Are the New Prices?

Here is a brief overview of the recently implemented fuel prices:

• Petrol used to cost Rs253.63 per liter, but now it costs Rs258.43.
• The price per litre of High-Speed Diesel (HSD) was raised to Rs262.59 from Rs254.64.

For the majority of people who depend on fuel for small company operations, delivery work, or commuting, it is a significant jump.

Fuel Prices in Pakistan – June 2025

Why Did the Price of Fuel Increase?

There are a few key reasons why we’re seeing this uptick in prices:

Global Market Pressure

The price of oil has been increasing on the global market. The majority of Pakistan’s fuel is imported, thus any increase in global prices has an immediate impact on our gas prices.

Exchange Rate Factor

The strength—or weakness—of the Pakistani rupee also plays a role. A decline in the rupee raises the cost of imports, which drives up prices for consumers even in the case of steady oil prices.

Upcoming Taxes and Levies

From July 1, the government plans to implement new taxes, including:

• A Rs77 per litre petroleum levy
• A Rs5 per litre carbon levy on furnace oil
• And an additional Rs2.5 per litre tax on petrol and diesel

This is part of Pakistan’s ongoing commitments under its loan program with the International Monetary Fund (IMF).

Public Reactions – More Burden for the Average Pakistani:

As anticipated, the public’s response has not been favorable. People already have to contend with rising utility rates, food prices, and inflation. An increase in gas costs feels like yet another hit to household spending plans.

“We plan everything around fuel costs—commute, groceries, deliveries. Every time prices go up, our plans fall apart,”

(Said a rideshare driver in Islamabad)

Transporters and business owners are also concerned. Many claim that they will have to increase the cost of their products or flights, which will have an impact on practically every aspect of everyday life.

The Economic Consequences of the Bigger Picture:

All other costs rise in tandem with the price of fuel. Food, goods, and services become more expensive as transportation expenses increase. A new wave of inflation, which the government has been working hard to curb, could result from this.

The State Bank of Pakistan is already struggling to strike a balance between economic expansion and inflation control. Their job is made more difficult by these new fuel prices.

Government’s Justification on Petrol Price In Pakistan:

Government officials argue that the adjustments are necessary and driven by international trends. They also highlight the nation’s financial commitments, especially those to the IMF, which call for structural changes, including adjustments to fuel prices.

The Finance Division claims that these price increases are a component of initiatives to guarantee long-term sustainability, lower the budget deficit, and stabilize the economy.

What Takes Place Next?

Unfortunately, this may not be the last increase we see. Fuel prices are likely to increase once more in early July due to new levies that go into force next month.

The petrol price in Pakistan is expected to stay unstable and largely on the higher side unless there is a substantial decline in the price of oil globally or a big improvement in the strength of the currency.

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Final Thoughts:

The most recent rise in the cost of gasoline and diesel has put further strain on household incomes that are already stretched. Many individuals view these policies as merely reducing daily necessities, despite the government’s insistence that they are important for the nation’s economic well-being.

As always, fuel prices are about more than just what we pay at the pump—they impact everything from bread to bus fares. And for now, all eyes will be on July, when the next round of price adjustments and taxes is expected to hit.