Petrol Prices Increased by 4.8 Per Litre, New Price: 258.47

In a significant development for Pakistani consumers, the federal government has officially increased the petrol price by Rs. 4.80 per litre, raising the new rate to Rs. 258.47 per litre. The hike was announced by the Ministry of Finance late Friday night and came into effect from June 15, 2025.

• Petrol price increased by Rs. 4.80/litre

• New petrol price: Rs. 258.47 per litre

• Increase effective from June 15, 2025

• Global crude oil surge and rupee devaluation cited as primary reasons

• High-speed diesel price expected to rise next

• Impact likely on transportation costs, goods prices, and inflation

The latest price hike comes as part of the government’s bi-weekly price review mechanism, which evaluates prices based on several international and local factors:

• Crude oil prices in the global market have seen a consistent upward trend over the last month.

• Brent crude oil recently crossed the $87 per barrel mark, increasing import costs for Pakistan.

• The Pakistani rupee has weakened against the US dollar, increasing the cost of fuel imports.

• Even a slight drop in rupee value adds pressure to the overall fuel pricing structure.

The petrol pricing in Pakistan is determined using a formula that includes:

• International oil rates

• Freight and premium charges

• Exchange rate fluctuations

• Petroleum levy (PL)

• General Sales Tax (GST)

• Dealer and distribution margins

This pricing mechanism, adopted under IMF guidelines, automatically passes global cost fluctuations to consumers.

While the notification did not include diesel prices, experts believe:

• High-speed diesel (HSD) rates will likely increase in the next review.

• Diesel is crucial for heavy transport, agriculture, and industrial operations, making this an even more impactful change for the business and logistics sectors.

In a public release, the Ministry of Finance stated:

"The revision in petroleum prices reflects the ongoing trends in the international oil market and the impact of exchange rate volatility. The new pricing structure is based on our commitment to maintain transparency and fiscal responsibility."

The increase in petrol prices leads to ripple effects across all sectors:

• Commuters using motorcycles, cars, and public transport will now spend more.

• Ride-hailing services (e.g., Careem, Uber) may adjust fares upward.

• Goods delivery charges are expected to rise.

• Fuel price hikes generally lead to higher prices of everyday goods due to increased transport costs.

• Vegetables, fruits, groceries, and construction materials may become more expensive.

• Diesel being more expensive means tractor operations and industrial generators cost more to run.

• This can affect crop yields, food production, and manufacturing output.

Social media platforms are buzzing with reactions from citizens:

• Many express frustration over the growing financial burden.

• Some urge the government to cut taxes and subsidize fuel to help ease inflation.

• Others question the timing of the hike amid economic challenges and stagnant wages.

Countries like India, Bangladesh, and even parts of Europe have also experienced price hikes.

Geopolitical tensions, especially in the Middle East, and OPEC+ production cuts are driving global oil costs.

This price hike is a reminder of how interconnected global markets, currency policies, and energy reliance are. With fuel prices now at Rs. 258.47 per litre, it's clear that Pakistani consumers are facing increasing financial strain.

The government must balance economic reforms with public relief, ensuring that inflation and living costs do not spiral further out of control.