Fuel prices are expected to rise by up to Rs6.50 per litre, driven by higher import premiums and global petroleum prices. This projected increase in prices is expected from July 16, after which prices will remain fixed for the upcoming fortnight.

 

According to data from reports, the price of high-speed diesel (HSD) could witness a staggering Rs6.50 per litre hike. Moreover, reports suggest that petrol prices could rise by approximately Rs5.25 per litre, causing strain on consumers. 

If implemented, this would be the second consecutive increase in fuel prices since the start of fiscal year (FY) 2025-26, on July 1, 2025. The price of petrol was hiked up by Rs8.36 per litre on June 30, causing its price to swell to Rs266.79 per litre.

The price of HSD increased on June 30th, too, rising by Rs10.39 to its current price level of Rs272.98 per litre. Reports reveal that the ex-depot price of HSD is likely to reach a whopping Rs279.48 per litre after witnessing a 2.5 percent increase.

Similarly, a two percent increase in petrol prices is also expected, causing analysts to predict that the price of the commodity is likely to sit at Rs272.04 for the upcoming fortnight. However, it merits a mention that these are only estimates and that the federal government has not yet released the final prices for the coming two weeks.

However, data from reports indicates a potential decline in the prices of light diesel oil and kerosene by Rs2.25 per litre and Rs3.80 per litre, respectively. While this could help consumers, according to reports, the collective benefits from the drop in prices of the aforementioned commodities do not outweigh the costs of the hikes in the prices of HSD and petrol.

 

This is because an increase in HSD prices directly increases the prices of food, as it is widely used in the agricultural sector to power tractors and other mechanised farm equipment. Moreover, reports reveal that transporters have been increasing fares in advance of the expected increase in fuel prices.

 

Accoridng to analysts, Islamabad is responsible for the sky-high fuel prices as the federal government charges a colossal Rs98 per litre on both petrol and HSD. A breakdown of the charges levied on consumers by Islamabad suggests that the petroleum development levy (PDL) makes up the largest portion of this charge, amounting to approximately Rs78 per litre. A Rs20 to Rs21 per litre customs duty is also imposed on fuel.