The federal government of Pakistan has announced a significant increase in petroleum product prices, with petrol rising by Rs 13.18 per litre and high-speed diesel (HSD) by Rs 13.80 per litre. The revised ex-depot prices will take effect from July 11, 2026, as per a press release from the Petroleum Division issued on Friday.
New Prices and Impact on Consumers
Following the hike, petrol will now cost Rs 310.71 per litre, up from the previous Rs 297.53 per litre. High-speed diesel has been increased to Rs 323.30 per litre from Rs 309.50 per litre. Kerosene oil has also seen a rise of Rs 11.19 per litre, now priced at Rs 242.33 per litre compared to the earlier Rs 231.14 per litre. The new rates are effective from Saturday until the next revision.
Petrol is primarily used in private transport, small vehicles, three-wheelers, and two-wheelers, while high-speed diesel is essential for the heavy transport sector, including buses, trucks, and agricultural machinery. This price surge is expected to increase transportation costs across the country, potentially affecting the prices of goods and services.
Context of Recent Price Adjustments
This increase comes after a slight reduction in the previous week. For the week ending July 10, the government had reduced petrol and diesel prices by Rs 1.97 per litre each. The current hike marks a reversal of that trend and places additional burden on consumers already grappling with inflation.
The Petroleum Division cited global oil price fluctuations and exchange rate adjustments as key factors behind the decision. Pakistan relies heavily on imported petroleum products, making domestic prices sensitive to international market movements and currency valuation.
Broader Economic Implications
The transport sector, which accounts for a significant portion of fuel consumption, is likely to pass on the higher costs to end-users. Analysts warn that this could lead to increased fares for public transport and higher logistics costs for businesses, further straining household budgets. The government has not announced any subsidy or relief measures to offset the impact.
In related news, ongoing security operations in Balochistan have reportedly eliminated 75 terrorists as part of Operation Shaban, though no direct link to fuel pricing has been established.
