Petrol Prices in Pakistan – Updated July 2025
The Petrol prices in Pakistan continue to increase and decrease after every 15 days. These developments impact not only the middle-class population, but all other Pakistani citizens, those that earn daily wages, as well as those in the middle-class. The prices have further gone up as at July 1, 2025. Although the world oil prices are declining, the costs of petrol and diesel are increasing because of the high local taxes, currency and government policies.
Here, we shall be discussing what the current petrol prices are, why have they increased, what determines these rates and how these rates reflect the daily life. We will also share the tax structure, against the old prices and also answer questions that you often ask about petrol in Pakistan.
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Latest Petrol Prices in Pakistan – July 2025
On July 1, 2025 finance division raised prices of petrol and high-speed diesel in accordance with recommendations of OGRA officially.
| Product Name | Price (Rs./Litre) | Change (Rs.) |
|---|---|---|
| Petrol (Premier EURO 5) | Rs.266.79 | +8.36 |
| High-Speed Diesel (EURO 5) | Rs.272.98 | +10.39 |
| Light Diesel Oil (LDO) | Rs.169.61 | – |
| Superior Kerosene Oil (SKO) | Rs.184.43 | – |
| Jet Fuel (JP-1) | Rs.191.25 | – |
These new rates have become effective and will stay until the next revision in the mid of July.
Why Did Petrol Prices Increase in Pakistan?
The factors affecting the petrol prices in Pakistan include:
- The prices of oil in global markets
- Exchange rate of Rupee against dollar
- Government taxes and levies
- Freight and dealer margin and commissions
Although the global oil prices have declined by a small margin as a result of calming tensions in the Middle East, as well as possible OPEC + decisions, local prices have increased. The reason being that Pakistan is receiving almost Rs.100/litre in taxes where several charges are included.
Tax Breakdown on Petrol & Diesel
The following is the structure of the price of petrol of Rs.266.79 as of July 2025:
- Petroleum Development Levy (PDL): Rs.78/litre
- Climate Support Levy: Rs.2.5/litre
- Custom Duty: Rs.19/litre
- Marketing & Dealer Margins: Rs.17/litre
- GST (General Sales Tax): 0% (currently not applied)
That is approximately 37 or 40 per cent of the total cost is the taxes and margins alone. This is one of the key reasons why there would always be a surge in the terms of fuel prices, regardless of whether oil has been made cheaper across the globe.
Petrol Price History – Past Few Fortnights
The following is a brief review of current updates on changes in prices of petrol and diesel:
| Effective Date | Petrol Price (Rs.) | Diesel Price (Rs.) | Hike in Petrol | Hike in Diesel |
|---|---|---|---|---|
| July 1, 2025 | 266.79 | 272.98 | +8.36 | +10.39 |
| June 16, 2025 | 258.43 | 262.59 | +4.80 | +7.95 |
| June 1, 2025 | 253.63 | 254.64 | +3.45 | +4.20 |
This is a clear indication that the prices have been on a constant rise particularly in June and July 2025.
Comparison: International vs. Local Prices
Global oil prices dropped in the last few days to a level of 67.65 dollars a barrel (Brent Crude) but Pakistan increased the prices of the petrol. This is primarily because of local taxation, a weak rupee and fiscal reforms endorsed by IMF.
Therefore, even after the international assistance, the people of Pakistan are languishing in high prices of pumps because of the local financial policies.
How Petrol Prices Affect Daily Life
The price of petrol does not only impact the drivers. They affect:
- Food prices (due to the high costs of transport)
- Pricing of the transport To arrange commuter transport activities
- Electricity distribution (particularly, diesel-powered generation)
- Transport in school and office
- General inflation rate
Every fuel increase comes with added burdens to families and more so, to the low income families. Even simple products such as vegetables, milk or a loaf of bread are expensive.
Additional Government Decisions on Energy Prices
- Domestic Gas Price Hike: OGRA has increased the tariffs of gas, by up to 50 percent, with an effect of July 1, 2025.
- Electricity Duty: On July 1 the Power Division abolished electricity duty in consumer bills as a means of simplifying the bill.
- LPG Relief: LPG has been cut by Rs. 7.51/kg and this has brought in some relief to the households.
On the one hand, certain decisions assure, but on the other hand, such decisions as fuel and gas increase increase the burden of the population.
FAQs – Petrol Prices in Pakistan
Conclusion
The Petrol Prices in Pakistan are revised after a span of 15 days and there are numerous factors that influence the prices of petrol such as the international oil market, rupee dollar exchange rates, taxes imposed by the government and many others. Since July 1, 2025, the price of petrol sold is at Rs.266.79 per litre and high-speed diesel is at Rs.272.98 per litre. The international oil prices have come to a decline but the Pakistanis have had to contend with high charged rates because of local taxes, levies, and inflation.
Normal people find it hard to live in such an environment because of these increases in prices. Transportation will be costly, food prices will rise and there will also be an increment in electricity prices. The government must come up with means of reducing the burden on the people by either lowering down the tax, increasing the value of the rupee, or accessing other energy sources locally.
All these will be wrought into the economy and lead to inflation as long as petrol prices are on the rise. This is the reason that people are anticipating the long-term changes in fuel rates and more open policies of the government.
