The federal government announced a significant rise in petroleum product prices, effective from June 16, 2025, for the next fortnight. This increase comes as global oil prices surge in response to escalating tensions between Israel and Iran.
High-Speed Diesel (HSD) saw the largest increase, rising by Rs 7.95 per litre, from Rs 254.64 to Rs 262.59 per litre. Petrol prices also saw a hike of Rs 4.80 per litre, climbing from Rs 253.63 to Rs 258.43 per litre.
According to a notification, the finance division stated that the new prices had been determined “based on the recommendations of the Oil and Gas Regulatory Authority and the relevant ministries”.
These price adjustments are directly tied to the volatility in the international oil market, which has been heavily influenced by the ongoing conflict between Israel and Iran.
Previous estimates suggested that petrol and diesel prices would increase by about Re1 and Rs5 per litre, respectively, for the next fortnight, owing to higher international market prices.
On Friday, oil prices surged sharply, with Brent crude futures closing 7.02% higher at $74.23 per barrel, an increase of $4.87. Earlier in the same day, prices had jumped over 13%, reaching an intraday high of $78.50, driven by concerns that the conflict could severely disrupt oil exports from the Middle East.
Despite zero General Sales Tax (GST) on petroleum products, the government is charging approximately Rs94 per litre in duties and taxes. These include a Petroleum Development Levy (PDL) of Rs77.01 per litre on diesel and Rs78.02 on petrol and high-octane products.
Additionally, customs duties of Rs16 per litre are applied to both petrol and HSD, whether locally produced or imported. Oil companies and dealers also receive about Rs17 per litre in distribution and sale margins.
