ISLAMABAD: Prices of petroleum products in Pakistan are likely to rise by up to Rs5 per litre starting Monday, July 1, 2025, according to government sources. The increase is being attributed to two key factors: the imposition of a new carbon levy and the recent depreciation of the Pakistani rupee against the US dollar.
Sources revealed that a carbon levy of Rs2.50 per litre will be applied to petrol, diesel, and furnace oil. In addition, the burden of currency exchange rate fluctuations will also be passed on to consumers. The rupee has weakened by 81 paisas against the US dollar, further contributing to the projected price hike.
The Oil and Gas Regulatory Authority (OGRA) is currently preparing a working paper on the revised prices. This document will be submitted to the federal government today, following which a final decision will be made by Prime Minister Shehbaz Sharif.
The expected hike comes at a time when inflationary pressures continue to impact household budgets, and any further rise in fuel prices is likely to have a ripple effect on transportation and commodity costs across the country.
