ISLAMABAD: The federal government is likely to increase the prices of petroleum products for first half of July 2025, putting an additional burden on masses.
Sources said petrol prices may rise by up to Rs11 per litre, while diesel prices could increase by as much as Rs15 per litre in the fortnightly review.
Officials indicate that the Oil and Gas Regulatory Authority (OGRA) will submit a summary to the Ministry of Petroleum today.
Finance Minister Muhammad Auranbzeb will hold consultation with Prime Minister Shehbaz Sharif before announcing the new rates for petroleum products.
This price hike is largely attributed to recent surge in crude oil prices in the international market coupled with the weakening of the Pakistani rupee.
The adjustment in fuel prices is likely to have widespread effects on the economy, impacting transportation costs and the prices of goods across the country.
It is recalled that a 12-day war that started with Israel targeting Iran’s nuclear facilities on June 13 pushed up Brent prices, which surged above $80 a barrel after the U.S. bombed Iran’s nuclear facilities. However, it slumped to $67 after President Donald Trump announced an Iran-Israel ceasefire.
Meanwhile, oil prices fell on Monday as an easing of geopolitical risks in the Middle East and the prospect of another OPEC+ output hike in August improved supply expectations amid persistent uncertainty over the outlook for global demand.
Brent crude futures fell 13 cents, or 0.19%, to $67.64 a barrel by 0344 GMT, ahead of the August contract’s expiry later on Monday. The more active September contract was at $66.62, down 18 cents.
Earlier, the federal government had decided to impose Rs2.5 carbon levy on petroleum products and furnace oil in the federal budget for 2025-26.
According to the Finance Ministry, the decision has been made to impose a carbon levy of Rs 2.5 per litre on petrol, high-speed diesel, and furnace oil. In 2026-27, the carbon levy rate will be increased to Rs5 per litre.
Sources in the Finance Ministry say that the carbon levy is being imposed as per IMF demands.
