The federal government of Pakistan has announced yet another increase in fuel prices, raising the petrol price by PKR 4.80 per litre to PKR 258.43 per litre, according to a notification issued by the Ministry of Finance, ARY News reported.
Simultaneously, the price of high-speed diesel (HSD) has also been raised by PKR 7.95 per litre, bringing the new rate to PKR 262.59 per litre. The revised prices are effective immediately and will remain in force for the next 15 days, as per the official statement.
Latest Petrol and Diesel Prices (As of June 17, 2025):
- Petrol: PKR 258.43/litre (↑ PKR 4.80)
- High-Speed Diesel: PKR 262.59/litre (↑ PKR 7.95)
Background: IMF Pressure and Previous Fuel Price Adjustments
Earlier this month, on June 1, 2025, Pakistan’s government had increased the petrol price by PKR 1 per litre, setting the price at PKR 253.63 per litre. The price of diesel, however, was kept unchanged at PKR 254.64 per litre at that time.
In the backdrop of the latest price hike, International Monetary Fund (IMF) conditions have played a significant role. During ongoing negotiations over Pakistan’s upcoming 2025-26 federal budget, the IMF reportedly urged Islamabad to:
- Impose a PKR 2 per litre carbon levy on petrol, diesel, and internal combustion engine vehicles.
- Differentiate fuel pricing by offering a PKR 2 per litre discount on digital payments (via debit/credit cards) compared to cash transactions, to promote digital economy practices.
The IMF’s suggestions are part of broader fiscal reforms aimed at boosting revenue and reducing Pakistan’s fiscal deficit.
Impact on Citizens
As per reports, the latest hike is likely to burden ordinary citizens by raising daily transportation and logistics costs. Fuel price increases typically have a cascading impact on inflation, food prices, and commuting expenses.