Government raises petrol, diesel prices by over Rs13 per litre

Inflation-hit masses faced another major setback on Friday as the government increased petrol and high-speed diesel prices by up to Rs13.80 per litre for the coming week.

The federal government on Friday announced a sharp increase in petroleum product prices, raising the rates of both petrol and high-speed diesel for one week with effect from July 11, 2026, adding fresh pressure on households and businesses already struggling with persistent inflation.

According to a notification issued by the Petroleum Division, the price of High-Speed Diesel (HSD) has been increased by Rs13.80 per litre, taking its new ex-depot price to Rs323.30 per litre from the previous Rs309.50 per litre.

Similarly, the price of Motor Spirit (petrol) has been increased by Rs13.18 per litre, with the new ex-depot price fixed at Rs310.71 per litre, compared with the previous Rs297.53 per litre.

The revised prices will come into effect from July 11, 2026, and will remain applicable for the next week under the government's weekly petroleum pricing mechanism.

The latest increase is expected to trigger a fresh wave of inflation as higher fuel prices generally translate into increased transportation costs, freight charges and production expenses, ultimately pushing up the prices of essential commodities and services.

High-speed diesel is widely consumed by heavy transport vehicles, buses, trucks, tractors, tube wells and agricultural machinery. Any significant increase in its price directly affects freight rates, agricultural input costs and the supply chain, resulting in higher prices for consumers.

Petrol, on the other hand, is the primary fuel used by motorcycles, cars, rickshaws and small commercial vehicles. The increase will immediately raise commuting costs for millions of motorists and further squeeze household budgets.

The Petroleum Division issued the official notification after the government's approval of the revised ex-depot prices for petroleum products.