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 Rs. 305.12 per litre. This change, affecting millions across the nation, raises issues regarding inflation and increasing transportation costs.
New Fuel Price Structure
The Oil and Gas Regulatory Authority (OGRA) revised fuel rates for major petroleum products. These adjustments reflect 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 stressed that this adjustment is necessary to avoid subsidies and maintain fiscal stability. Rising global oil prices have significantly strained the national budget, making prolonged subsidies unsustainable for Pakistan’s economy.
A spokesperson from the Petroleum Division stated, “We understand the burden on citizens, but the government cannot afford continuous subsidies that disrupt the national budget.” The decision aims to protect 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 the increase will exacerbate inflation and raise transportation costs nationwide. This ripple effect impacts public transport fares and 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.
