People in Pakistan may face higher fuel prices starting June 16, 2025, as global oil costs continue to rise. The government is reviewing the fuel rates and could increase the price of petrol by Rs. 1 per litre and high-speed diesel by around Rs. 5 per litre for the second half of June.
If approved, the new price of petrol may reach approximately Rs. 254 per litre, while diesel could go up to nearly Rs. 260 per litre. This expected hike will likely impact everyday expenses, especially for low and middle-income households who are already struggling with inflation.
Higher diesel prices often result in increased transport and agricultural costs, which can lead to a rise in prices of basic goods like fruits, vegetables and other food items.
Experts believe the increase is mainly due to the pressure from international oil markets. Despite GST being applied to petroleum products at the moment, the government still collects significant taxes.
These include a Petroleum Levy of Rs. 78.02 per litre on petrol and Rs. 77.01 per litre on diesel. Additionally, a customs duty of Rs16 per litre is applied to both locally produced and imported fuels.
The government currently collects around Rs. 94 per litre in total taxes and duties on petrol and diesel. As fuel plays a key role in almost every sector from transport to farming any rise in prices tends to affect overall inflation in the country.
