Petrol and Diesel Prices Likely to Increase Again: Public Braces for Another Fuel Hike

Motorists across Pakistan are bracing for yet another increase in fuel prices, as the government is expected to announce a significant hike in the prices of Petrol and Diesel later tonight. According to sources close to the Ministry of Finance and preliminary reports from local media, the price of petrol is expected to increase by Rs. 5 to Rs. 6 per litre, while high-speed diesel (HSD) may see a rise of Rs. 6.5 to Rs. 7 per litre.

Although some initial reports suggested a modest increase of Rs. 3 for petrol and 78 paisas for diesel, it now appears that the actual hike could be steeper due to rising global oil prices and the depreciation of the Pakistani rupee against the US dollar. The final decision will be based on recommendations from the Oil and Gas Regulatory Authority (OGRA), and the new prices will take effect from midnight, July 16, 2025.

Why the Prices Are Rising

There are several factors behind this expected fuel price hike:

1. International Crude Oil Prices:
   Global oil prices have seen a steady upward trend over the past few weeks, crossing $86 per barrel due to geopolitical tensions and increased demand during the summer travel season. This directly impacts fuel import costs for Pakistan, a country heavily reliant on imported petroleum products.

2. Rupee Depreciation:
   The Pakistani rupee has weakened against the US dollar over the last fortnight, trading above Rs. 294/$ in the interbank market. This currency depreciation increases the cost of imported fuels, which must be paid in dollars.

3. Tax Adjustments and Government Levies:
   The government has committed to the International Monetary Fund (IMF) to maintain and even increase petroleum levy targets to meet fiscal deficit goals. Currently, the government is charging a petroleum levy of Rs. 60 per litre on petrol, which limits its ability to absorb global price shocks without passing them on to consumers.

Economic and Social Impact

If implemented, this would be the third fuel price hike in the last two months. Such frequent increases are having a cascading effect on the overall cost of living in the country. Fuel is a primary input for transportation, logistics, agriculture, and manufacturing. As a result, any rise in fuel prices almost inevitably leads to inflation in essential commodities, including food and household items.

For the average Pakistani, these price hikes are deeply unsettling. Daily commuters, especially those who rely on motorcycles and small cars, will feel the immediate burden. Public transport operators have already hinted at possible fare hikes, and goods transporters are also expected to adjust freight charges accordingly.

Political Repercussions

With general elections expected in early 2026, fuel prices have become a hot political issue. The current coalition government is walking a tightrope—balancing between fulfilling IMF conditions and avoiding a political backlash from the public. Opposition parties have already begun criticizing the government’s handling of the economy and are likely to use these price hikes as fuel for protests and public campaigns.

OGRA’s Role and Transparency Concerns

OGRA, the Oil and Gas Regulatory Authority, is responsible for calculating and recommending changes in petroleum prices based on international trends and local exchange rates. However, critics argue that the process lacks transparency, and there’s limited public disclosure about the precise formula or basis for the revisions. Consumer rights groups have repeatedly called for more clarity and accountability in how fuel prices are determined and communicated to the public.

What’s Next?

The final prices for petrol and diesel will be officially announced later tonight after the Prime Minister and the Ministry of Finance review OGRA’s summary. The new prices will be effective from July 16, 2025, and will remain in place for the next 15 days, after which another review will take place.

Meanwhile, many citizens rushed to petrol stations across cities like Lahore, Karachi, and Islamabad to fill their tanks ahead of the anticipated hike, causing long queues and temporary shortages at some outlets.

Conclusion

Another increase in petrol and diesel prices would mark yet another blow to an already strained Pakistani household budget. While the government cites international obligations and market trends as reasons for the hike, the impact on daily life is immediate and widespread. In a country where inflation is already above 20%, every rupee increase at the fuel pump adds to the pressure faced by ordinary people.

The coming days will likely see strong public reactions, protests from transport associations, and more heated debate over how the government plans to address Pakistan’s growing energy and economic challenges.

Reference:   آج پیٹرول 3 روپے اور ڈیزل 78 پیسے مہنگا ہونے کا امکان