In another blow to the already burdened public, the federal government led by Prime Minister Shehbaz Sharif has approved a sharp increase in fuel prices, effective from July 16. The hike comes amid rising global oil rates and domestic fiscal adjustments.

According to the latest notification by the Finance Division, the petrol price in Pakistan has been increased by Rs5.36, bringing the new rate to Rs272.15 per litre. Meanwhile, high-speed diesel (HSD) will now cost Rs284.35 per litre after a steep hike of Rs11.37 per litre.

This price revision will remain in effect for the next 15 days, as part of the government’s bi-monthly pricing mechanism. The increase was finalised following recommendations from the Oil and Gas Regulatory Authority (Ogra), which had submitted its working paper to the Ministry of Energy earlier this week. The recommendations also factored in the pricing inputs from oil marketing companies.

Before the hike, petrol was selling at Rs266.79 per litre, while diesel stood at Rs272.98. With the updated rates, both fuels are inching toward record highs, placing further pressure on households and businesses struggling with inflation.

Officials confirmed that while Ogra provides technical estimates based on international oil trends and exchange rates, the final decision on fuel prices is made by the federal government in consultation with the prime minister. This allows the state some flexibility in absorbing or passing on global price fluctuations to the public.

The Finance Ministry stated that the adjustment aims to reflect current market conditions and maintain pricing parity, especially given the rupee’s performance and volatile crude oil rates globally.

For many Pakistanis, the petrol price in Pakistan continues to be a major concern, impacting transport, food costs, and utility expenses. The sharp jump in diesel prices is also expected to have a ripple effect on the country’s supply chain and agricultural sector.