Islamabad, August 3, 2025 — The Government of Pakistan announced a petrol price increase of Rs. 5.25 per litre. Effective from midnight, the new price is now Rs. 305.12 per litre. This change, affecting millions nationwide, raises concerns about inflation and rising transportation costs.
New Fuel Price Structure
The Oil and Gas Regulatory Authority (OGRA) has revised fuel rates for major petroleum products. These adjustments reflect both international market fluctuations and exchange rate impacts on Pakistan’s energy sector.
- Petrol: Rs. 305.12 per litre (increase of Rs. 5.25)
- High-Speed Diesel (HSD): Rs. 312.87 per litre (increase of Rs. 4.80)
- Kerosene Oil: Rs. 212.44 per litre (increase of Rs. 3.10)
Government’s Fiscal Policy Rationale
The Ministry of Finance emphasized that this adjustment is essential to avoid subsidies and maintain fiscal stability. Rising global oil prices have significantly pressured the national budget, making prolonged subsidies unsustainable for Pakistan’s economic health.
A spokesperson from the Petroleum Division noted, “We understand the burden on citizens, but the government cannot afford continuous subsidies that disrupt the national budget.” This decision aims to safeguard Pakistan’s fiscal position amid volatile international energy markets.
Economic Impact and Public Response
The fuel price hike has drawn criticism from opposition parties and civil society organizations. Critics argue that the increase will escalate inflation and raise transportation costs across the country. This ripple effect impacts everything from public transport fares to goods delivery, potentially raising the cost of living for average Pakistanis.
This revision of petroleum rates coincides with Pakistan facing global economic pressures and efforts to stabilize its financial condition.
