ISLAMABAD – The federal government has announced a sharp increase in fuel prices, raising the cost of petrol by Rs4.80 per litre and high-speed diesel (HSD) by Rs7.95 per litre, effective from June 16. The move comes amid rising global oil prices and a growing financial squeeze as Pakistan implements IMF-backed reforms.
According to an official notification issued by the Finance Division, the revised rates were determined on the recommendations of the Oil and Gas Regulatory Authority (OGRA) and in consultation with relevant ministries.
Following the adjustment, petrol will now be sold at Rs258.43 per litre, up from Rs253.63, while diesel will cost Rs262.59, compared to the previous rate of Rs254.64.
Hike Exceeds Market Expectations
The fuel price hike exceeds earlier market estimates. Analysts had anticipated a marginal rise of Re1 per litre for petrol and around Rs5 per litre for diesel, based on fluctuations in international oil prices. However, the actual increase has proven more severe.
Experts suggest the unexpected hike reflects the government’s urgency to stay on track with revenue targets agreed with the International Monetary Fund (IMF). Under these commitments, Pakistan has pledged to raise petroleum-related levies and taxes to improve fiscal discipline.
Earlier this week, authorities confirmed plans to impose Rs77 per litre petroleum levy starting July 1, along with a Rs5 per litre carbon levy on furnace oil, and Rs2.5 per litre on both petrol and diesel.
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Public Faces Fresh Economic Burden
The steep increase in fuel prices will directly impact transportation costs, potentially triggering a new round of inflation, especially in food and essential commodities. Public transport operators, goods carriers, and agricultural machinery users who rely heavily on diesel are expected to bear the brunt of this decision.
Consumers across the country have already been grappling with high utility bills, rising taxes, and stagnant wages. The latest fuel price adjustment adds another burden on households ahead of the upcoming fiscal year.
Meanwhile, opposition parties and citizens have taken to social media to voice frustration, calling the increase unjustified and insensitive amid ongoing economic hardships.
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