Petrol Hits Rs272.15 Per Litre as Govt Hikes Fuel Prices Again

The government has raised fuel prices again. Petrol now costs Rs272.15 per litre. Find out what’s driving the increase and how it affects you.The Government of Pakistan has announced another fuel price hike, marking the third consecutive increase. As of July 16, 2025, petrol is priced at Rs272.15 per litre, while diesel has surged to Rs284.35 per litre. The updated rates, released by the Finance Division, follow OGRA's recommendation and reflect rising global and domestic costs.

Latest Fuel Prices in Pakistan

These new OGRA fuel prices will remain effective until July 31, 2025.

Why Did Fuel Prices Go Up?

Several key factors contributed to the fuel price hike in Pakistan:

• Global oil market volatility: While crude prices have slightly dipped, war risk premiums due to Iran-Israel tensions raised import costs.

• PKR devaluation: The weakening Pakistani rupee against the US dollar has pushed up the cost of petroleum imports.

• Tax and freight adjustments: The government kept petroleum levy at Rs75 per litre for petrol and increased inland freight margins.

• OGRA recommendations: The Oil and Gas Regulatory Authority recommended a price revision based on current market indicators and freight costs.

Impact on the Public

The fuel inflation in Pakistan is already affecting everyday life:

• Higher transport fares: Rickshaw, taxi, and intercity bus fares have increased by Rs10–30 on average.

• Bike users affected: Daily commuters now spend Rs150–200 more per month on fuel.

• Supply chain costs rising: Diesel is crucial for trucks and agricultural machinery — expect increased food and produce prices in markets.

• Low-income households: Those already struggling with food inflation and utility bills now face another financial hit.

What Officials Said

According to the Finance Division, the hike was “unavoidable due to international price pressure and exchange rate fluctuations.”
OGRA, in its summary, cited “global supply disruptions and increased freight margins” as key contributors.

Officials also clarified that General Sales Tax (GST) remains at 0%, but the petroleum levy continues to support budgetary needs.

Public Reaction

Public frustration is growing, with many turning to social media to express concerns:

“My monthly commute just got more expensive again. When will it stop?” – User on X

Daily wage earners and transporters held small protests in Lahore and Karachi, demanding relief or fuel subsidies.

Opposition leaders criticized the move as “anti-people” and warned of rising inflation without support for lower-income groups.

What’s Next?

Analysts believe prices may remain high if the PKR continues to slide or if global tensions worsen. However, if crude oil stabilizes and the rupee strengthens slightly, minor reductions could come in the August 1 review.

There is currently no official announcement on subsidies or direct fuel relief packages, but pressure is mounting on the government.