Business Desk 
Jun 29, 2025
An undated image of a petrol pump. — Canva
Petrol prices in Pakistan are likely to hike from next month as surging global oil prices amid escalating geopolitical tensions in the Middle East, particularly the Israel-Iran conflict, according to a market report by Arif Habib Limited (AHL).
Various sources indicated that petrol and diesel will become more expensive from July 1, 2025. This increase will impact transportation costs and may also drive up prices of goods and services, especially food items.
According to AHL, overall domestic diesel prices are expected to rise by Rs18.06 litre to Rs280.65, and petrol by Rs13.86 litre to Rs272.29.
The hike in diesel price is primarily important, as it’s widely used in transport vehicles. These revised rates are expected to be officially implemented starting July 1, 2025.
| Fuel type | Current price | Expected increase | New price |
| Diesel | Rs262.69 | Rs18.06 | Rs280.75 |
| Petrol | Rs258.43 | Rs13.86 | Rs272.29 |
These increases have been fueled by fears of supply disruptions from the ongoing Israel-Iran conflict, driving up international demand and costs for refined petroleum products.
Petroleum prices effect on Pakistan
Higher fuel prices have a far-reaching impact on Pakistan’s economy, particularly as petroleum products are directly linked to transportation, logistics, and industrial production.
A surge in diesel costs is expected to further increase the price of goods and services, contributing to inflationary pressure on consumers already facing high living costs.
However, the Ministry of Finance has yet to officially announce the new petroleum prices on June 30, 2025.
