Petrol, Diesel Prices May Rise by Rs. 21–27/Liter From July 1 Amid Global Tensions

ISLAMABAD – High-Speed Diesel (HSD) and Motor Spirit (MS) Petrol prices in Pakistan may see a steep hike of up to Rs. 27 and Rs. 21 per liter, respectively, from July 1, 2025, warned Arif Habib Limited, citing rising global oil prices amid Israel-Iran conflict.

According to latest estimates:

• Petrol (MS) could be priced at Rs. 279–280/liter

• High-Speed Diesel (HSD) may go up to Rs. 289–290/liter

Why the Sudden Price Surge?

Since June 13, 2025, international prices have shown a sharp increase:

• Gas Oil (used in diesel) jumped by 9.6%, reaching $93.3 per barrel

• Gasoline (used in petrol) rose by 4.5%, hitting $83.4 per barrel as of June 20, 2025

The Middle East tensions, especially the escalations between Israel and Iran, are disrupting global oil supply expectations, thereby spiking prices.

What This Means for Pakistan

If the upward trend continues, domestic fuel prices will be revised significantly upward starting the new fiscal year. The Ministry of Finance is expected to announce the revised prices in the last week of June, which will take effect from midnight, July 1, 2025.

This potential increase comes on the heels of a recent hike:

• On June 15, the government increased:

  • Petrol by Rs. 4.80/liter

  • Diesel by Rs. 7.95/liter

Possible Economic Impact

• Inflation pressure: Transport and goods costs will rise

• Public backlash: Fuel cost is a sensitive issue, especially amid existing inflation

• Wider deficit risks: Higher oil import bills could strain Pakistan’s current account