ISLAMABAD: Pakistani citizens prepare for yet another increase in petrol prices, as the Pakistani government will introduce a new carbon tax of Rs2.50 per liter on petroleum products from July 1, 2025.
Officials close to the Petroleum Division stated that the development was made in a briefing to the National Assembly’s Standing Committee on Finance.
Petrol Carbon levy is the government’s more general fiscal reform, and shall be imposed on petrol and diesel already subjected to existing petroleum levies of Rs 78.
The government plans to raise the overall petroleum levy to Rs90 per litre eventually as part of its revenue collection plan.Pakistani government hiked fuel prices by hiking petrol by Rs 4.80 to Rs 258.43 per liter and high-speed diesel by Rs 7.95 to Rs 262.59 per liter. The new prices, valid for 15 days, are part of the government’s routine fuel price revisions based on movements in global markets.
Global Oil Prices
The impending hike is at a time when international oil markets are already witnessing increased volatility. Tension between Iran and Israel forced crude oil prices higher for the third straight week, on concerns of possible supply disruptions.
As of June 2025, Brent crude is trading at $77.04 per barrel, while West Texas Intermediate (WTI) is trading at $75.67. Even without direct attacks on oil facilities, heightened threats in the Strait of Hormuz have pushed up the cost of shipping tankers and oil rerouting.
Current Petrol Price in Pakistan
| Fuel Type | Price |
|---|---|
| Petrol | 258.43 |
| Diesel | 262.59 |
