The federal government has increased fuel prices across Pakistan, effective from July 16 to July 31, 2025. According to the Finance Ministry’s notification, petrol now costs Rs272.15 per litre after a Rs5.36 hike, while high-speed diesel (HSD) has surged by Rs11.37, taking its price to Rs284.35 per litre. These revised rates are applicable nationwide starting midnight and will remain in effect until the month ends.
This price hike is part of the government’s routine revision, which depends on global oil trends and the rupee’s value. The ministry stated that recent international market conditions, along with currency fluctuations, played a major role in this increase. As fuel prices directly impact transportation and goods, the hike may put added pressure on inflation.
Globally, oil prices climbed slightly on Monday, adding to gains recorded at the end of last week. Brent crude increased by 21 cents to reach $70.57 per barrel, while U.S. West Texas Intermediate rose by 20 cents to settle at $68.65. These gains followed earlier increases of over 2% in both benchmarks on Friday.
The global oil market remains volatile due to various factors, including possible new U.S. sanctions on Russia and increased Saudi production. Although international demand is rising during peak summer travel, uncertainty around tariffs and oil supply continues to influence price shifts. The International Energy Agency has also noted that market tightness may be deeper than it appears.
Consumers in Pakistan are already dealing with rising living costs, and this fresh increase in fuel prices is expected to add further strain. With prices soaring ahead of major travel and business activity, transporters and businesses are likely to pass on the burden to customers, making the coming weeks tougher for many households.