Pakistani government made big increase in petrol, diesel prices from July 1, citing a spike in international oil rates driven by recent Israeli airstrikes on Iran.
After latest revision, petrol prices have been raised by Rs8.36 to Rs266.79 per litre, and rate of diesel moved up to Rs10.39, reaching Rs272.98 per litre.
Ministry of Finance said the Oil and Gas Regulatory Authority (Ogra) reviewed global oil trends and recommended adjustments to domestic prices accordingly. (LPG) prices have been reduced by Rs7.51 per kilogram, offering minor relief to households that rely on it for cooking and heating.
Petrol Price in Pakistan
| Product | New Price | Change |
| Petrol | 272.98 | +8.36 |
| Diesel | 266.79 | +10.39 |
As of July 2025, the government is collecting nearly Rs100 per litre in taxes on both petrol and diesel. This includes a petroleum development levy (PDL) of Rs78 per litre, a newly imposed climate support levy of Rs2.5 per litre effective from July 1, and a customs duty of Rs19 per litre, regardless of local production or import origin.
Additionally, Rs17 per litre is allocated to oil marketing companies and dealers as part of distribution and retail margins.
With no general sales tax (GST) currently applied to petroleum products, these levies and margins form a significant part of the final consumer price.
The increase comes at a time when inflation remains high and energy costs continue to be a major burden on households and businesses. Economists warn that the latest fuel price hike could further strain household budgets and contribute to a new round of inflation in the coming weeks.
