KARACHI – Petrol price in Pakistan is expected to climb higher from next month as global oil prices moved up sharply after military strikes on Iranian nuclear sites.
Sources familiar with development confirmed to Pakistan Observer that Petrol and Diesel will become more expensive from July 1. This increase will affect transportation costs, and may also drive up prices of goods and services, especially food items. The rise in diesel price is particularly important because it’s widely used in transport vehicles.
Expected Petrol Price from July 1, 2025
| Fuel Type | Current Price | Expected Increase | New Price |
| Diesel | Rs 262.59 | Rs 25-27 | Rs 290 |
| Petrol | Rs 258.43 | Rs 20-22 | Rs 280 |
Consumers in South Asia will face an increase in fuel prices amid soaring oil prices pushed by Middle East tensions. Petrol prices are projected to go up by Rs 20-25, taking the rate from Rs 258.43 to Rs 279.92, reflecting an 8.3% increase.
This sharp jump in fuel prices is anticipated to impact transportation costs and inflation, affecting both households and businesses across the country.
Global Oil Rates
Amid tensions, US crude jumped 2.7pc to $75.80 per barrel, while Brent moved up 2.44pc to $78.88. The market responded to fears of broader conflict and potential disruptions to global oil supply. Iran condemned the strikes, increasing geopolitical tensions in the region.
In 2025-26 budget, Pakistan also introduced new Carbon Levy of Rs2.5 per litre on petrol, diesel, and furnace oil, starting July 1, 2025, and rising to Rs5 in 2026-27. This is in addition to the existing Petroleum Development Levy (PDL) of Rs78 on petrol and Rs77 on diesel.
The levy aims to reduce fossil fuel use and fund climate and green energy initiatives. The government also plans to apply PDL on furnace oil, with rates to be announced later. Additionally, reports suggest the PDL may rise to Rs100 per litre in line with IMF agreements under the ongoing $7 billion Extended Fund Facility.
https://pakobserver.net/brent-nears-80-wti-crosses-76-as-middle-east-war-sends-oil-prices-soaring/
