Fuel prices in Pakistan have once again reached historic highs, leaving citizens reeling under the weight of rising costs. The federal government has announced a sharp hike in petrol and high-speed diesel (HSD) rates for the second half of July 2025, marking the second consecutive increase this month alone. Petrol is now priced at Rs272.15 per litre and HSD at Rs284.35; the announcement has deepened economic pressure on already burdened households.
Just two weeks after the government increased fuel prices on July 1, consumers are now hit with another hike of Rs5.36 per litre for petrol and Rs11.37 per litre for HSD. The decision, based on recommendations by the Oil and Gas Regulatory Authority (Ogra), has ignited public frustration, officials cite global oil market volatility and high petroleum levy (PL) rates as the driving forces behind the surge.
Currently, PL stands at Rs78.02 per litre on petrol and Rs77.01 on diesel, with additional costs added from inland freight charges and exchange rate adjustments. Despite a slight drop in the prices of kerosene, light diesel oil (LDO), and RLNG, the reduction does little to ease the broader financial strain.
For most Pakistanis, this price hike is a direct threat to daily survival. Diesel is essential for transport and agriculture, meaning the ripple effects will show up in the price of food, goods, and logistics. Petrol, the primary fuel for cars and motorcycles, also serves as a CNG alternative, especially in regions like Punjab where imported LNG is used in gas stations.
Analysts warn that these rising fuel prices, without any targeted relief or subsidies, will continue to widen the gap between stagnant household incomes and soaring inflation. However, the government had the option to cut down PL to offer relief, it chose to prioritize revenue collection instead.
Read more: Government Raises Fuel Prices by Rs.30 Once Again
