The federal government on Monday announced an increase in fuel prices for the next fortnight, effective July 1, citing fluctuations in international crude oil markets.
According to the Finance Division, the price of petrol has been raised by Rs8.36 per litre, bringing it to Rs266.79 from the previous Rs258.43. Meanwhile, the price of high-speed diesel (HSD) has surged by Rs10.39 per litre — now set at Rs272.98, up from Rs262.59.
This marks the second hike in fuel prices within a month. On June 16, petrol rose by Rs4.80 per litre, while HSD increased by Rs7.95.
The latest adjustments come amid international oil prices slipping slightly, as investors weigh easing tensions in the Middle East and the possibility of increased output from OPEC+ in August. Despite the recent dip, Brent and U.S. crude benchmarks recorded their sharpest weekly drops since March 2023.
In a related development, sources revealed that the government has imposed a carbon levy of Rs2.50 per litre on the revised fuel prices. The levy on petrol now stands at Rs75.52 per litre, while the levy on high-speed diesel is set at Rs74.51 per litre.
This fuel price hike follows a decision by the Oil and Gas Regulatory Authority (Ogra) to raise fixed gas charges for domestic consumers by 50% for the fiscal year 2025–26, also effective from July 1.
Petrol is widely used by small vehicles, motorbikes, and rickshaws, making the price increase particularly burdensome for middle- and lower-income households. In contrast, high-speed diesel powers much of the country’s transport and agricultural machinery — including trucks, buses, trains, tractors, and tube wells — making its price a major contributor to inflation, especially in food and essential goods.
