ISLAMABAD: The federal government is likely to increase petrol and diesel prices for the first half of July 2025, with the official announcement expected later tonight.
According to reports, the Oil and Gas Regulatory Authority (OGRA) will submit its recommendations to the Ministry of Finance on June 30, after which Finance Minister Muhammad Aurangzeb will consult with Prime Minister Shehbaz Sharif to finalize the new rates. These revised prices will be effective from July 1 to July 15.
Market sources indicate that petrol prices may rise by Rs11 per litre, taking the new price to Rs269.43, while diesel could see an increase of Rs15, pushing its price to Rs277.59 per litre.
The potential hike is being attributed to the recent global oil market volatility, especially following the Iran-Israel tensions, which caused crude oil prices to surge to $80 per barrel. Adding to the increase, the government has also introduced a Rs2.5 per litre carbon levy on both petrol and diesel in the 2025–26 federal budget, effective from July 1.
OGRA Also Approves Gas Tariff Hike for Domestic and Industrial Consumers
In a related development, OGRA has announced a significant increase in gas tariffs, adding more pressure to inflation-stricken citizens. The new pricing structure will also come into force on July 1.
Revised Domestic Gas Tariffs (per MMBTU):
- Protected consumers: Rs200 – Rs350
- Non-protected consumers: Rs500 – Rs4,200
- Fixed monthly charges:
- Protected users: Rs600
- Non-protected users: Rs1,500
- Non-protected (high usage over 1.5 cubic meters): Rs3,000
Sector-Wise Gas Prices:
- Government, hospitals, educational institutes: Rs3,175
- Tandoors: Rs110 – Rs700
- Commercial consumers: Rs3,900
- General industry: Rs2,300
- Captive power plants: Rs3,500
- CNG stations: Rs3,750
- Cement factories: Rs4,400
- Fertilizer sector: Rs1,597
- Power plants including K-Electric: Rs1,225
The government states that the revised gas tariff structure aims to rationalize subsidies and improve revenue collection. However, the combination of rising fuel and gas prices is expected to intensify public concerns over the increasing cost of living in the country.
