Islamabad, June 16, 2025 – Pakistan has announced a sharp increase in petroleum prices, effective from June 16, 2025, amid rising global oil market volatility triggered by the escalating Iran-Israel conflict. The revision will remain in effect for the remainder of the month, ending June 30.
In a late-night announcement, the Ministry of Finance confirmed that the increase in petroleum prices was necessary due to the sudden and steep rise in international oil prices. The latest development marks the third consecutive revision of fuel rates in Pakistan amid external geopolitical tensions.
According to the notification, High-Speed Diesel (HSD) has witnessed the highest jump, increasing by Rs 7.95 per litre—from Rs 254.64 to Rs 262.59 per litre. Petrol prices have also been raised by Rs 4.80, bringing the new rate to Rs 258.43 per litre, up from Rs 253.63.
The Finance Ministry stated that Pakistan’s decision to adjust petroleum prices is in line with the fluctuations in global crude oil markets, which spiked dramatically after Israel launched missile strikes on Iranian territory. Iran reportedly retaliated, sparking fears of a broader conflict that could destabilize oil supplies from the Middle East.
On Friday, international oil benchmarks soared, with Brent crude futures closing at $74.23 per barrel—up by 7.02% or $4.87. Intraday trading had seen even more dramatic gains, with prices hitting $78.50, reflecting a 13% surge driven by market fears of supply disruptions.
The government of Pakistan emphasized that it is closely monitoring the evolving geopolitical situation and its impact on petroleum prices. Authorities also urged citizens to conserve fuel where possible and expect continued adjustments in petroleum prices if international tensions persist.
With rising inflation already burdening households, this fresh hike in petroleum prices is likely to further strain Pakistan’s economy and increase transport and production costs across sectors.