The government has again raised fuel prices in its latest fortnightly review, effective 1 July 2026. Petrol now costs Rs 310.71 per litre and high-speed diesel (HSD) Rs 323.30 per litre — increases of Rs 13.18 and Rs 13.80 respectively. Notably, the rise comes even as international oil prices have softened, because the increase is being driven largely by a higher petroleum levy rather than by global crude costs.
New fuel prices at a glance
| Fuel | Previous price | New price | Increase |
|---|---|---|---|
| Petrol | Rs 297.53 | Rs 310.71 | +Rs 13.18 |
| High-Speed Diesel (HSD) | Rs 309.50 | Rs 323.30 | +Rs 13.80 |
Why prices went up
The main driver is the petroleum levy. The government has pushed the levy on petrol up to its budgeted ceiling of Rs 80 per litre (from around Rs 70). Because global oil prices were actually lower this cycle, consumers did not receive the relief they might otherwise have seen — instead, the potential saving was absorbed by the higher levy. This is a deliberate fiscal choice: the levy is a major source of federal revenue, and raising it helps the government meet budget targets under its IMF commitments.
The impact on ordinary Pakistanis
Diesel matters most for prices. HSD powers trucks, buses, tractors and goods transport, so a diesel increase feeds quickly into the cost of almost everything:
- Transport fares — intercity buses, ride-hailing and rickshaw fares typically rise within days.
- Food and groceries — higher freight costs push up the price of vegetables, wheat flour and daily-use items.
- Agriculture — farmers relying on diesel tractors and tube-wells face higher input costs, which can affect crop prices.
- Household budgets — commuters and families feel a direct squeeze, adding to overall inflation.
What happens next
Fuel prices in Pakistan are reviewed every fortnight (around the 1st and 16th of each month) based on international prices, the rupee-dollar rate, and levies. Reports suggest further increases may be considered in the next review, so households and businesses should plan for continued volatility. For the exact official rates each cycle, always check the OGRA notification.
Prices in this article reflect the revision effective 1 July 2026 and may change at the next fortnightly review.