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Fuel Prices Set to Rise Again as Global Oil Rates Climb
Petrol, diesel prices likely to rise again: Rs1/litre for petrol & Rs5/litre for diesel by June 16 due to global rates. Impact expected on middle class & transport sector.
ND
by News Desk
2025-06-14
Fuel Prices Set to Rise Again as Global Oil Rates Climb

Consumers in Pakistan may face another round of fuel price hikes in the coming days, as government estimates suggest a potential increase of Re1 per litre in petrol and Rs5 per litre in high-speed diesel (HSD) for the next fortnight starting June 16 and ending June 30.

Informed sources revealed that the anticipated rise is driven by increased prices in the international oil market. Based on current taxation and pricing formulas, the ex-depot price of petrol — currently at Rs252.63 per litre — is projected to rise by about Re1, pending the final adjustment expected on June 15.

Petrol is predominantly used by private vehicles, motorcycles, and rickshaws, making any price hike a direct burden on the middle and lower-middle classes who rely on these modes of transport.

Meanwhile, HSD, which powers heavy vehicles, agricultural machinery, and intercity transport, is expected to see a Rs5 per litre increase, pushing its current ex-depot rate of Rs254.64 even higher. As diesel is a critical input for the transportation of goods, any rise tends to fuel inflation, particularly in food prices.

Despite zero GST on petroleum products, the government continues to charge substantial levies — including a Petroleum Development Levy (PDL) of Rs78.02 per litre on petrol and Rs77.01 on diesel. An additional Rs16 per litre in customs duties and Rs17 per litre in distribution margins are also added, irrespective of whether the product is locally refined or imported.

This layered tax structure means the consumer pays a significant portion of the final fuel price in government charges and dealer commissions. With transport costs linked closely to diesel, the expected hike could trigger a ripple effect on commodity prices and public transport fares — which rarely decrease even when fuel prices do.

The final prices will be announced after review and approval by the Ministry of Finance in consultation with OGRA on June 15.

 
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