Starting July 16, 2025, petrol prices in Pakistan are expected to increase by up to Rs6.60 per litre, while high-speed diesel (HSD) may rise by Rs5.27, according to government sources. The increase is based on recent spikes in global oil prices and domestic fiscal adjustments.
This comes on the heels of the July 1 hike, when petrol rose by Rs8.36 and diesel by Rs10.39 per litre. The adjustments are awaiting final approval from Prime Minister Shehbaz Sharif and will apply for 15 days once approved.
The rising fuel prices are linked to a Rs2.50 per litre carbon levy introduced in the 2025–26 budget, along with a petroleum development levy of Rs75.52 per litre on petrol and Rs74.51 on diesel. These measures, taken to meet IMF loan conditions, have triggered public backlash amid continued inflation and rising living costs.
Economists warn the fuel price hike could drive up transportation and commodity prices, further straining household budgets.
Published in SouthAsianDesk, July 14th, 2025
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