Petrol Price Crosses Rs. 270 as Government Implements New Hike

ISLAMABAD, July 15, 2025 – The federal government has once again revised petroleum prices upward, further burdening consumers already facing record-high inflation. According to a notification from the Finance Division, the new prices for petrol and diesel have come into effect from July 15, 2025. In the new pricing regime, the price of petrol in Pakistan has risen by Rs. 5.36 per liter whereby the new price of petrol is fixed at Rs. 272.15 per liter. Meanwhile, the high-speed diesel price in Pakistan has surged by Rs. 11.37 per liter, raising the cost to Rs. 284.35 per liter.

Petroleum Prices in Pakistan See Consecutive Hikes

This is the third increment in fuel prices in one month only. During the previous fortnightly petroleum review, held at the start of July, the price of petrol was raised by Rs. 8.36, reaching Rs. 266.79. Similarly, the diesel price increased by Rs. 10.39, taking it to Rs. 272.98. In mid-June, the government had already revised rates upward, with petrol going up by Rs. 4.80 per liter and high-speed diesel by Rs. 7.95 per liter.

What Is Driving the Surge in Petrol and Diesel Prices?

According to market analysts and economists, several key factors have contributed to this latest spike:

International crude oil prices have remained volatile, largely due to global geopolitical tensions and disruptions in oil supply chains.
The Pakistani rupee’s depreciation against the US dollar has also escalated import costs.
Higher freight charges and international premiums have added to the landed cost of petroleum products.
As per a report by the Pakistan Institute of Development Economics (PIDE), domestic taxes and levies such as the petroleum levy and general sales tax (GST) also play a significant role in the final consumer price.

“Given the government’s reliance on petroleum levies to meet fiscal targets under the IMF program, further hikes in the petrol rate in Pakistan may not be off the table,” said Dr. Iftikhar Ahmad, a senior economic researcher at PIDE.

Public Reaction and Economic Impact

The repeated increases in petroleum prices in Pakistan have sparked concerns across various sectors. According to a recent survey conducted by Gallup Pakistan, over 68% of respondents believe that rising fuel prices are directly affecting their household budgets. Transporters and logistics companies are already warning of fare and freight rate hikes, which could further impact the prices of essential goods. “Inflation is already in double digits. Every increase in diesel rate in Pakistan translates into higher food and transportation costs,” said Mubeen Aslam, a grocery store owner in Lahore.

Updated Fuel Prices in Pakistan (Effective July 15, 2025)

Fuel Type	Previous Price (Rs./L)	Increase (Rs./L)	New Price (Rs./L)
Petrol	266.79	5.36	272.15
High-Speed Diesel	272.98	11.37	284.35

(Source: Finance Division Notification)

Topical Analysis: Why Diesel Price Matters More Than You Think

While both petrol and diesel are crucial for the economy, the diesel price in Pakistan holds greater significance in the industrial and agricultural sectors. High-speed diesel is used in:

Public and freight transportation
Agricultural machinery and irrigation pumps
Power generation in rural and off-grid areas

“Every rupee increase in HSD price raises input costs for farmers and industries,” stated an analyst from the Federation of Pakistan Chambers of Commerce & Industry (FPCCI).

Expert Opinion and Future Outlook

Energy analysts forecast that unless international crude oil prices stabilize and the rupee strengthens, future petroleum price updates in Pakistan may continue on an upward trajectory. As per an energy market brief by Bloomberg Economics, countries heavily reliant on imported fuel, like Pakistan, remain vulnerable to external price shocks.

About the Author

This article has been compiled by the Education Desk at Taraqqi.pk — a team of writers and former educators committed to publishing verified, student-focused academic content. All information has been cross-checked with official board notifications and reliable educational resources.