Gas tariffs also hiked, adding more burden on inflation-weary households
Petrol and diesel prices are expected to see another steep rise from July 1, as authorities prepare to adjust domestic rates in line with global market pressures and the weakening Pakistani rupee.
According to senior officials in the Petroleum Division, petrol prices may climb by up to Rs11 per litre, while high-speed diesel could go up by Rs15 per litre. The Oil and Gas Regulatory Authority (OGRA) is finalising its summary, which will be sent to the Ministry of Petroleum later today. A formal notification from the Ministry of Finance is expected by midnight.
The proposed hike, if approved, would be the second fuel price increase in just over two weeks. On June 16, petrol rates were raised by Rs4.80 per litre and diesel by Rs7.95 per litre, sparking public frustration amid already surging inflation.
Global Trends, Local Impact
Officials attribute the fresh hike to a double blow: rising international crude prices and continued depreciation of the Pakistani rupee against the US dollar. “Both factors have significantly pushed up import costs, and we’re left with limited room to absorb the impact,” said a Petroleum Division source who requested anonymity.
As per protocol, the Finance Minister will consult with Prime Minister Shehbaz Sharif before the new pricing structure is approved.
Major Hike in Gas Tariffs
In a separate development, OGRA has notified a substantial increase in gas tariffs for domestic consumers and other sectors, effective July 1.
Under the new structure, household gas prices will now range from Rs200 to Rs4,200 per MMBTU, depending on consumption slabs. This represents an increase of up to 50% for some categories.
Additionally, OGRA has introduced fixed monthly charges for domestic users — a first for many low-usage households. The move, aimed at stabilising gas utilities’ finances, is likely to stir public concern amid broader cost-of-living anxieties.
Mounting Pressure on Households
With electricity already expensive and food inflation stubbornly high, the twin blow of higher fuel and gas prices is expected to worsen the financial squeeze for ordinary Pakistanis.
“This is yet another hit on the poor and middle class,” said economist Dr. Farooq Saleem. “Fuel prices drive up transport and goods costs. When you also raise domestic gas tariffs, the cumulative impact on inflation is significant.”
As July approaches, the government faces growing pressure to cushion the impact through targeted relief or subsidies — though with limited fiscal space, those options may be hard to come by.
