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Petrol Prices Reduced in Pakistan

Petrol and Diesel Prices Likely to Increase Again from July 16

July 15, 2025
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Petrol and diesel prices in Pakistan are set for another hike from July 16, adding fresh pressure to household and transport budgets across the country. According to early estimates, the price of petrol may go up by Rs. 5.25 per litre, while high-speed diesel (HSD) could increase by Rs. 6.50 per litre — if the government gives its final approval.

Expected Fuel Prices This Month

If these proposed changes are approved, the ex-depot price of petrol will reach around Rs. 272.04 per litre, marking a 2% increase from the current Rs. 266.79. This comes just weeks after petrol prices jumped by Rs. 8.36 on June 30.

High-speed diesel, which fuels Pakistan’s trucks, buses, tractors, and trains, could rise to approximately Rs. 279.48 per litre, up by 2.5% from its current rate of Rs. 272.98 per litre. Diesel prices had already increased by Rs. 10.39 earlier this month.

Who Will Be Hit the Hardest?

These back-to-back fuel price hikes hit the daily budgets of middle- and low-income families the hardest. Petrol is the primary fuel for millions of motorcycles, rickshaws, and private vehicles in Pakistan. With fuel taking up a significant portion of daily commuting expenses, an increase directly affects household finances.

Rising diesel prices have a broader impact on the economy as they push up the cost of transporting goods and agricultural produce. Transporters are already hinting at fare adjustments to pass on the burden to consumers.

Some Limited Relief on Other Fuels

While petrol and diesel are expected to get costlier, kerosene oil may see a drop of Rs. 3.80 per litre, and light diesel oil (LDO) could fall by Rs. 2.25 per litre. Although these fuels are less commonly used, they still serve specific domestic and industrial needs, offering limited relief to a small segment of consumers.

What Makes Up the Fuel Price in Pakistan?

Despite the government imposing zero general sales tax on petroleum products, it still collects around Rs. 98 per litre in total duties and charges. This includes:

  • A petroleum development levy of Rs. 78.02 per litre on petrol and Rs. 77.01 on diesel.
  • A climate support levy of Rs. 2.25 per litre.
  • Customs duties ranging from Rs. 20 to Rs. 21 per litre on both local and imported fuel.
  • Oil marketing companies and dealers also add about Rs. 17 per litre as their distribution and retail margins.

Global Oil Market Still Volatile

The global crude oil market remains unpredictable. Brent crude recently dipped by 79 cents to $69.57 a barrel, while US crude fell by $1.07 to $67.38. Earlier, oil prices had spiked amid threats of tougher US sanctions on Russian oil exports but softened again as traders expected possible negotiations.

Looking Ahead

While final decisions on local fuel prices will come from the government soon, households and businesses should prepare for higher transport and commodity costs if the proposed hike goes through. Consumers are advised to plan budgets accordingly and keep an eye on official notifications in the coming days.


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