Petrol prices likely to see sharp increase in Pakistan

ISLAMABAD: The prices of petroleum products in Pakistan are expected to increase significantly despite a decline in global oil prices, ARY News reported on Monday, citing sources.

The price of high-speed diesel is likely to increase by Rs14.86 per litre, while the petrol rate is expected to rise by Rs11.43 per litre for the next fortnight, effective from July 1, 2025.

The Oil and Gas Regulatory Authority (OGRA) will submit its summary on revised petroleum prices today. The Petroleum Division and the Ministry of Finance will review the working before forwarding it to Prime Minister Shehbaz Sharif for final approval.

Petrol price in Pakistan effective from July 1, 2025

Meanwhile in international market, oil prices fell on Monday as an easing of geopolitical risks in the Middle East and the prospect of another OPEC+ output hike in August improved supply expectations amid persistent uncertainty over the outlook for global demand.

Brent crude futures fell 12 cents, or 0.18%, to $67.65 a barrel by 0718 GMT, ahead of the August contract’s expiry later on Monday. The more active September contract was at $66.56, down 24 cents.

Earlier, Senate standing committee for finance on Thursday rejected the budget proposal for imposing carbon levy on petroleum with majority of vote.

The government has proposed Rs 2.5 carbon levy on petrol in federal budget for fiscal year 2025-26.

Senator Sherry Rehman opposing the levy said that there is difference between the carbon levy and carbon tax. “There is no place in the world where carbon levy been imposed but carbon tax used to be enforced”. “It requires an act of law and not enforced with the finance bill,” PPP senator further said.

Senator Mohsin Aziz said that the Supreme Court has restrained imposition of carbon levy in Zafar Iqbal Jhagra case. “It will be contempt of the court if carbon levy imposed”.