In the most recent fortnightly review of petroleum prices, the Government of Pakistan has raised the cost of petrol by Rs 5.36 per liter, pushing the rate from Rs 266.79 to Rs 272.15, effective from midnight on July 16, 2025. Similarly, high-speed diesel (HSD) experienced a sharper increase of Rs 11.37 per liter, with prices now standing at Rs 284.35, up from Rs 272.98. This marks the second rise in fuel prices this month, following earlier hikes of Rs 8.36 for petrol and Rs 10.39 for diesel at the start of July.
What’s Behind the Hike?
These adjustments stem from the Oil & Gas Regulatory Authority’s (OGRA) recommendations, based on the fluctuations in global crude oil prices, currency exchange rates, and local tax structures. Recent increases in international oil prices, particularly due to renewed tensions in the Middle East, have raised the cost of imports, prompting the government to adjust domestic pricing accordingly.
The inland freight equalization margin (IFEM), which compensates suppliers for distribution costs across provinces, has also been adjusted—rising to Rs 8.89 per liter for petrol (from Rs 6.96) and Rs 6.04 per liter for diesel (up from Rs 2.09).
Impact on Consumers and Economy
For ordinary commuters, the additional Rs 5.36 per liter might seem modest, but the wider economic ramifications are significant. An ENGRO report indicates that such increases translate into higher transportation costs for both private vehicles and public transport, which then cascade into inflated prices of goods and service. Diesel, in particular, being used widely in logistics and agriculture, may push up freight and farming costs, potentially fueling an inflationary ripple in staple food prices.
Traveling Costs to Go Up
Several transportation companies have announced fare increases to help cover rising diesel costs. According to a report, inter-city bus and wagon services are expected to raise fares by up to Rs 100 per passenger, while Pakistan Railways is reviewing its pricing structure for possible ticket adjustments before the end of July.
What Lies Ahead?
These revised fuel prices will remain effective until the next scheduled review on August 1, 2025. Pakistan typically revises petroleum prices twice a month, and with global oil prices showing volatility, further adjustments—upwards or downwards—cannot be ruled out.
Bottom Line
Fuel prices in Pakistan have exceeded Rs 270 per liter for petrol and Rs 280 per liter for diesel. While driven by external pressures, the sudden jumps place additional strain on Pakistani households already grappling with high inflation. The increased cents per liter may seem minimal in isolation, but across regular fuel consumers, the monthly burden is palpable.
Tips to Ease the Impact
- Drive efficiently: Maintain recommended tire pressure and avoid unnecessary idling to maximize fuel economy.
- Carpooling: Sharing rides can greatly lower the commuting costs for each person.
- Explore alternatives: Even occasional use of CNG (if accessible) or public transport can lower reliance on petrol/diesel.
- Plan smart trips: Consolidate errands to minimize multiple short drives.
As fuel prices continue to be influenced by global dynamics, staying informed and adopting smart consumption habits can help mitigate the impact. Have you noticed changes in your daily expenses? Share your experiences—you’re not alone in navigating this challenging terrain.
