Pakistan government announced a modest increase in petrol prices, raising the rate by Re1 per litre from June 1. The new price of petrol is now set at Rs253.63, up from the previous Rs252.63, according to a notification issued by the Finance Division late Saturday night.
The price of high-speed diesel (HSD), however, remains unchanged, offering some relief to transporters and industries heavily reliant on diesel fuel.
Petrol Price in Pakistan
| Fuel Type | Old Price | New Price | Change |
|---|---|---|---|
| Petrol | 252.63 | 253.63 | +1.00 |
This decision follows an earlier announcement by the Oil and Gas Regulatory Authority (Ogra), which confirmed a reduction of Rs4.62 per kilogram in the price of liquefied petroleum gas (LPG) for the month of June.
According to the official notification, the revised fuel prices were determined in line with recommendations from Ogra and consultations with relevant ministries.
The updated rates have come into immediate effect, with motorists and consumers expected to adjust to the new pricing at fuel stations across the country.
Earlier, it was reported that Petrol prices may drop by Rs0.60 to Rs1.00 per litre, reducing current rate of Rs252.63 to between Rs251.63 and Rs. 251.03, but it turned the other way.
Final prices are subject to approval from Ministry of Finance, and the new rates will be announced on May 31, 2025.
The modest cuts are being driven by dip in international oil prices. Brent crude is currently trading between $64.02 and $64.60 per barrel, while West Texas Intermediate (WTI) has slipped below $61 per barrel, marking 1.5pc decline. This decline follows reports that OPEC+ may soon boost global oil output, though the scale and timeline remain uncertain.
While June may offer some relief, a major price surge is expected from July 2025 due to new fiscal policies. The government plans to increase the Petroleum Development Levy (PDL) to more than Rs. 100 per litre, aligning with conditions set by the International Monetary Fund (IMF) under the Extended Fund Facility.
As part of this strategy, a new Rs5 per litre carbon levy on both petrol and diesel is also being proposed to address environmental concerns.
As of May 2025, Pakistani government levies Rs. 78.2 per litre on petrol and Rs. 77.1 per litre on diesel. If the planned increases are implemented, fuel prices could climb towards Rs. 300 per litre, a move that would place a significant financial burden on consumers.
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