Govt increases petrol price by Re1 per litre
Business
The finance division issued a notification
(Web Desk) - The federal government has hiked the petrol price by Re1 for the next fortnight. After this decision, the new rate of petrol is Rs253.63 per litre.
The rate of high-speed diesel (HSD) would remain the same at 254.64 per litre.
The finance division issued a notification and new rate would become applicable from June 1 (Sunday).
The modest cuts are being driven by dip in international oil prices. Brent crude is currently trading between $64.02 and $64.60 per barrel, while West Texas Intermediate (WTI) has slipped below $61 per barrel, marking 1.5pc decline.
This decline follows reports that OPEC+ may soon boost global oil output, though the scale and timeline remain uncertain.
Read more: Oil prices set for weekly drop with tariff legal battles, OPEC plus in focus
While June may offer some relief, a major price surge is expected from July 2025 due to new fiscal policies. The government plans to increase the Petroleum Development Levy (PDL) to more than Rs. 100 per litre, aligning with conditions set by the International Monetary Fund (IMF) under the Extended Fund Facility.
As part of this strategy, a new Rs5 per litre carbon levy on both petrol and diesel is also being proposed to address environmental concerns.
As of May 2025, Pakistani government levies Rs. 78.2 per litre on petrol and Rs. 77.1 per litre on diesel. If the planned increases are implemented, fuel prices could climb towards Rs. 300 per litre, a move that would place a significant financial burden on consumers.
Read More: OPEC+ oil producers stick to their guns with another big hike for July
