• Implementation Date: Price increases kick in from July 1 to July 15, marking the start of the new fiscal year 2025–26 tribune.com.pk.

  • Petrol and Diesel Hikes:

    • Petrol: Increased by Rs 8.36/litre, rising from Rs 258.43 to Rs 266.79 tribune.com.pk.

    • High-Speed Diesel (HSD): Jumped Rs 10.39/litre, climbing from Rs 262.59 to Rs 272.98 tribune.com.pk.

  • Reason Behind the Surge:

    • Triggered by the 12-day Iran–Israel conflict, which sent crude oil prices soaring by 7–11% (to $82–87/barrel) tribune.com.pk.

    • Prices eased back to around $67/barrel after the ceasefire, but the increase remained tribune.com.pk.

  • Import Dependency:

    • Pakistan imports ≈85% of its petroleum needs, primarily from the Middle East; domestic production covers just 15% tribune.com.pk.

  • Inflationary Fallout:

    • HSD: Widely used in agriculture and transport, so its rise will likely drive up inflation and transport costs tribune.com.pk.

    • Petrol: Heavily consumed by motorbikes and cars—often as an alternative to CNG; price hike reduces the petrol‑CNG price gap tribune.com.pk.

  • Taxation & Levies:

    • The government continues to impose a Rs 77+/litre petroleum levy on both petrol and diesel tribune.com.pk.

    • A new carbon levy has also been introduced, further inflating fuel costs tribune.com.pk.

  • Revenue Target Pressure:

    • Officials set a record Rs 1.4 trillion revenue target for the petroleum levy in FY 2025–26, up from Rs 1.161 trillion in FY 2024–25 tribune.com.pk.

    • Instead of adjusting levies to ease consumer burden, price hikes were implemented directly .