Fuel Prices in Pakistan Expected to Surge by Up to Rs. 27/Liter

Motorists in Pakistan should brace for another sharp rise in fuel prices, with High-Speed Diesel (HSD) and Motor Spirit (MS) petrol expected to increase by Rs. 27/liter and Rs. 21/liter, respectively. The anticipated hike is attributed to surging global oil prices amid escalating geopolitical tensions in the Middle East, particularly the Israel-Iran conflict, according to a market report by Arif Habib Limited.

New Petrol and Diesel Prices from July 1, 2025

If current international pricing trends continue, the new retail price of petrol in Pakistan may reach Rs. 279–280/liter, while high-speed diesel could climb to Rs. 289–290/liter. These revised rates are expected to be officially implemented starting July 1, 2025.

This potential increase follows the government’s most recent adjustment on June 15, 2025, when petrol and diesel prices were raised by Rs. 4.80 and Rs. 7.95 per liter, respectively, to close out the final fortnight of the fiscal year 2024–25.

International Market Pressures

The global oil market has seen a sharp uptick since mid-June. Between June 13 and June 20, 2025, international prices for Gas Oil and Gasoline jumped by 9.6% and 4.5%, respectively. As of June 20, Gas Oil is trading at $93.3 per barrel, while Gasoline stands at $83.4 per barrel.

These increases have been fueled by fears of supply disruptions from the ongoing Israel-Iran conflict, driving up international demand and costs for refined petroleum products.

Economic Impact on Pakistan

Higher fuel prices have far-reaching consequences for Pakistan’s economy, particularly as petroleum products are directly linked to transportation, logistics, and industrial production. A surge in diesel costs is expected to further increase the price of goods and services, contributing to inflationary pressure on consumers already facing high living costs.

With crude oil prices rising in the international market and local adjustments imminent, consumers in Pakistan should prepare for a notable increase in fuel costs starting July 1, 2025. The evolving geopolitical scenario will be a critical factor in determining future pricing trends.

Disclaimer:
The information provided in this article is based on market analysis and projections from credible sources, as of June 2025. The estimated fuel price increases are speculative and subject to change based on international oil market dynamics, government policies, and geopolitical developments. Actual prices may vary depending on future decisions made by Pakistan’s Ministry of Finance and the Oil and Gas Regulatory Authority (OGRA). Readers are advised to consult official government announcements or authorized sources for the most accurate and up-to-date fuel pricing information. This article is intended for informational purposes only and does not constitute financial or policy advice.

Afsheen Gohar

Afsheen Gohar is a seasoned writer with a wealth of experience in crafting authentic and well-researched articles. Her dedication to delivering high-quality content is evident in her work, where she combines a passion for storytelling with a commitment to accuracy and depth. Afsheen’s writing reflects her ability to engage readers with compelling narratives while providing valuable insights on a diverse range of topics.