Govt hikes petrol price by Rs4.80 per litre, diesel by Rs7.95

June 16, 2025 (MLN): The federal government on Sunday announced a hike in fuel prices for the upcoming fortnight, raising petrol and high-speed diesel (HSD) prices by Rs4.80 and Rs7.95 per litre, respectively.

According to a notification issued by the Finance Division, the new prices, effective from June 16, 2025, have been set at Rs262.59 per litre for petrol and Rs258.43 per litre for HSD, based on recommendations from OGRA and relevant ministries.

This marks the second consecutive increase in petrol prices, following a Re1 hike in the previous fortnight amid relatively stable global oil markets.

The hike was mainly driven by higher international prices and adjustments in the Inland Freight Equalization Margin (IFEM), as per the price build-up data.

The average Platts price (with incidentals and duty) for diesel surged by Rs5.44, while the IFEM saw a Rs1.72 increase. Diesel’s ex-refinery price rose by Rs5.91 per litre, while petrol’s ex-refinery cost increased by Rs1.12.

Although the petroleum levy (PL) remains unchanged at Rs77.01/litre on diesel and Rs78.02/litre on petrol, rising import costs and logistic adjustments contributed to the upward revision.

No sales tax has been applied, and there is no PDC (price differential claim) involved.

The hike in prices is expected to strain household budgets further. Meanwhile, the rise in HSD prices is likely to trigger cost increases across the supply chain, particularly for essential food items like vegetables and grains.

Earlier this week, the government reaffirmed its commitment to the International Monetary Fund (IMF), announcing a petroleum levy of Rs77 per litre and additional charges, including Rs5 per litre carbon levy on furnace oil and Rs2.5 per litre on petrol and diesel, effective from July 1.

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