Pakistan has witnessed a sharp increase in fuel prices, with petrol rising by Rs8.36 per litre to Rs265.61 and diesel by Rs10.39 per litre to Rs272.98, effective from July 1, 2025. This adjustment follows a surge in global oil prices triggered by heightened tensions in the Middle East, particularly due to the recent Israel-Iran conflict.
The escalation, marked by Israeli strikes on Iranian nuclear facilities and retaliatory actions, has driven global crude oil prices upward. Brent crude, a key benchmark, peaked at $81.40 per barrel before settling around $67 after a ceasefire was announced. However, the volatility in the oil market has directly impacted Pakistan, which relies heavily on imported oil. Posts on X reflect public frustration, noting that these price hikes add pressure to an already struggling economy facing high inflation.
The increase in fuel costs is expected to raise transportation and logistics expenses, likely leading to higher prices for goods and services across Pakistan. The Oil and Gas Regulatory Authority has mandated oil companies to maintain 20-day fuel reserves to ensure supply stability, but the financial burden on consumers remains significant. If global oil prices continue to fluctuate, further adjustments may occur, affecting households and businesses alike.
Published in SouthAsianDesk, July 1st, 2025
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