Islamabad, Pakistan – Web Desk: The government has announced a sharp increase in petroleum product prices for the coming week, raising petrol by Rs13.18 per litre and high-speed diesel by Rs13.80 per litre, according to a notification issued by the Petroleum Division . The revised rates take effect from July 11, 2026 .
New Fuel Prices
Following the increase, the price of petrol has climbed from Rs297.53 to Rs310.71 per litre, while high-speed diesel has risen from Rs309.50 to Rs323.30 per litre . The government reviews petroleum prices weekly, adjusting them based on fluctuations in international oil prices and the rupee-dollar exchange rate .
Global Factors Driving the Hike
The price adjustment comes as international crude oil prices surged following renewed military tensions between the United States and Iran . Brent crude climbed to around $77-$78 per barrel, while US West Texas Intermediate traded at approximately $73.60 per barrel . The escalation in the Middle East has created volatility in global energy markets, directly impacting Pakistan’s fuel import costs .
Impact on Consumers and Economy
The increase reverses a brief period of relief after the government reduced petrol and diesel prices by Rs1.97 per litre just a week ago . The latest hike is expected to trigger inflationary pressure, as higher fuel prices typically translate into increased transportation costs and production expenses, ultimately pushing up the prices of essential commodities .
Petrol is primarily used in private transport, motorcycles, rickshaws, and small commercial vehicles, making its price increase particularly burdensome for middle- and lower-income households . High-speed diesel powers heavy transport vehicles, agricultural machinery, and industrial generators, meaning its higher cost will affect freight rates and supply chains across the country .
Tax Component
The government is currently charging approximately Rs70 per litre as petroleum levy on petrol, along with a Rs5 per litre climate support levy . On diesel, the petroleum levy stands at about Rs80 per litre . Including customs duties and other charges, the total tax component on petrol amounts to around Rs95 per litre, while on diesel it reaches approximately Rs101 per litre .
