ISLAMABAD – Pakistanis brace for another hike in petrol prices, as Pakistani government is set to impose new carbon levy of Rs2.50 per litre on petroleum products starting July 1, 2025.
Sources familiar with the Petroleum Division said the announcement came during a briefing to the National Assembly’s Standing Committee on Finance.
Petrol Carbon levy is part of the government’s broader fiscal reforms, and will be applied on both petrol and diesel which are already burdened with existing petroleum levies of Rs78. The government aims to eventually increase the total petroleum levy to Rs90 per litre, as part of its revenue-generation strategy.
Petrol Price in Pakistan
| Fuel Type | Price |
|---|---|
| Petrol | 258.43 |
| Diesel | 262.59 |
Pakistani government increased fuel prices, raising petrol by Rs 4.80 to Rs 258.43 per litre and high-speed diesel by Rs 7.95 to Rs 262.59 per litre. The new rates, effective for 15 days, are part of the government’s regular fuel price adjustments in response to global market trends.
Global Oil Prices
The upcoming increase comes at time when global oil markets are already experiencing heightened volatility. Tensions between Tehran and Israel pushed crude oil prices higher for the third consecutive week, amid fears of potential supply disruptions.
As of June 2025, Brent crude is currently priced at $77.04 per barrel, while West Texas Intermediate (WTI) hovers at $75.67. Although there have been no direct attacks on oil infrastructure, increased risks in the Strait of Hormuz have led to a rise in tanker shipping costs and the rerouting of oil supplies.
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