Karachi, June 15, 2025 – The government of Pakistan is expected to announce revised petroleum prices today for the second half of June 2025, with a likely increase due to rising global oil rates triggered by escalating tensions in the Middle East.
This development comes as Pakistan reviews its local petroleum prices at a time when international crude oil markets are reacting sharply to intensifying hostilities between Iran and Israel. According to Reuters, global oil prices surged by nearly 7% during the week ending June 13, as military strikes exchanged between the two nations fueled fears of widespread disruptions in oil exports from the region.
Brent crude futures settled at $74.23 per barrel, up $4.87, or 7.02%, after earlier peaking at $78.50—a level not seen since January 27. Compared to the previous week, Brent crude prices rose by a staggering 12.5%.
As a net importer of crude oil and refined petroleum products, Pakistan is particularly vulnerable to fluctuations in international oil markets. The sharp increase in global crude prices has pushed up the country’s oil import bill, placing further strain on its foreign exchange reserves and leading to higher domestic petroleum prices.
Additionally, the Pakistani rupee experienced depreciation amid these global developments. On June 13, the interbank exchange rate stood at PKR 282.86 to the US dollar, compared to PKR 282.02 on May 30, adding further inflationary pressure on local petroleum prices.
Industry insiders anticipate a potential increase of up to Rs5 per litre in the ex-depot price of high-speed diesel (HSD), which is critical for transportation and agriculture. Petrol currently sells at Rs 252.63 per litre, while HSD is priced at Rs 254.64. Any increase in these prices is likely to further fuel inflation, especially in the transport and food sectors.
Despite petroleum products being exempt from General Sales Tax, the government currently collects nearly Rs94 per litre in taxes and levies. This includes a Petroleum Development Levy (PDL) of over Rs77 on diesel and Rs78 on petrol, along with customs duties and dealer margins.
To address the situation, the federal government has formed a 16-member high-level committee, chaired by the finance minister. The committee includes key officials from the petroleum, power, and finance ministries, and will monitor fuel supply, global market trends, and the broader economic impact on Pakistan. Its first meeting is scheduled for June 15, aiming to ensure market stability and preempt fuel shortages amid the geopolitical crisis.