The prices of petroleum products have surged by up to Rs11.37 per litre, driven by rising import premiums and global oil prices. The new rates came into effect on July 16 and will remain unchanged for the next two weeks.

 

According to data from reports, the price of high-speed diesel (HSD) has witnessed a staggering Rs11.37 per litre hike. Moreover, reports have revealed that petrol prices have also surged by Rs5.36 per litre, causing strain on consumers. 

 

This marks the second consecutive increase in fuel prices since the start of fiscal year (FY) 2025-26, on July 1, 2025. Previously, the price of petrol was increased by Rs8.36 per litre, causing its price to rise to Rs266.79 per litre.

 

The price of HSD previously increased at the start of FY 2025-26 from Rs10.39 to Rs272.98 per litre. The ex-depot price of HSD has now climbed up to a whopping Rs284.35 per litre after witnessing a 4.16 percent increase.

 

Similarly, a two percent increase in petrol prices has caused the price of the commodity to sit at Rs272.15 for the upcoming fortnight. As per a press release from the Finance Division, relevant ministries, along with the Oil & Gas Regulatory Authority (Ogra), revised the HSD and petrol prices.

 

However, data from reports indicates that the prices of light diesel oil and kerosene have remained unchanged for the upcoming fortnight. 

 

Before the hike, estimates pegged the increase in HSD prices to sit at just Rs6.50 per litre. However, HSD prices increased by almost 75 percent more than initial estimates.    

 

The increase in HSD prices has adverse effects on the economy as it directly increases the prices of food. This is because it is widely used in the agricultural sector to power tractors and other mechanised farming equipment. Additionally, reports indicate that transporters have raised fares in response to the fuel price hike.

 

According 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.