Islamabad:
On Tuesday, the government wandered the prices of oil products up to RS11 per year. Liters for the second half of July 2025 in a regressive step that would aggravate the financial difficulties that the ordinary man faces.
This is the second consecutive increase in prices of gasoline and diesel since the beginning of the new financial year on July 1st. On June 30, the government had increased fuel prices up to RS10 for the first two weeks of the current month ending Tuesday.
Separately, the Oil and Gas Regulatory Authority (OGRA) announced a reduction in the prices of re -forgotten liquid natural gas (RLNG) for the current month, while the frequency of paraphin oil and light diesel oil also fell down slightly.
According to a notification issued by the financial department, the gasoline price increased by RS5.36-from RS266.79 to RS272.15 per year. Liter, while high -speed diesel (HSD) increased by RS11.37 per Liter-from RS272.98 to RS284.35 for July 16-31.
This latest adjustment in the petrol and HSD prices reflects lasting volatility in the global oil markets. It also shows the government’s fiscal limitations of meeting its ambitious income targets as it already charges the highest rate for oil tax (PL) on the petroleum products to collect revenue.
The government said it had made the latest decision on OGRA’s recommendations and the relevant ministries. “The government has decided to revise the prices of oil products for fourteen days from July 16, based on the recommendations of OGRA and the relevant ministries,” it said.
OGRA had recommended the increase in prices of oil products based on RS78.02 per year. Liter PL on gasoline and RS77.01 on HSD. It had also assumed Inland’s shipping equalization margin (IFEM) at RS8.89 per year. Liter of gasoline and RS6.04 on HSD. The currency course was calculated for RS3 per year. Liter of gasoline and RS2 on HSD.
Diesel is widely used in agriculture and freight transport, and any price increase directly affects the cost of goods and services. Meanwhile, gasoline burns motorcycles and cars and acts as an alternative to compressed natural gas (CNG), especially in Punjab, where CNG stations are dependent on imported LNG.
The fresh price increase is expected to expand the gap between stagnant household income and the increasing cost of living. Analysts have warned that without the fiscal space or targeted subsidies, brown of global oil evolatility will continue to be passed on to end users.
The government had room to save consumers from the current increase in oil prices by cutting the stroke of PL, but it did not compromise with revenue collection and therefore transferred the full influence of the increase in oil prices in the global market to consumers.
On July 1, the federal government has increased the petrol and HSD prices significantly and attributed to the hike to the global market volatility in the midst of Iran-Israel war. Gasoline was increased by RS8.36 to RS266.79 per Liter, and HSD with RS10.39 for RS272.98, based on OGRA’s recommendation.
Pakistan imports petroleum products to meet about 85% of its local consumption, while 15% needs are met through locally produced crude oil. At present, consumers are already paying over RS77 per year. Liter in pl. The current year’s budget also includes a new carbon tax that further pushes fuel prices.
Meanwhile, in the deregulated market, parafin oil becomes cheaper with RS3.10, and the price of LDO fell down with RS1.85, while through a review announced a reduction in RLNG prices for the current month on the back of the slight fall in the EX-Ship (DES) price.
According to the Ogra message, the RLNG prices for Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) had undergone changes in both transmission and distribution segments.
For SNGPL, the new transmission price is set at $ 10,8338 per year. Million British Thermal Devices (MMBTU), down from $ 11,0154, reflecting falls of $ 0.1816 or 1.65%. The distribution price has been revised at $ 11,5787 per MMBTU from $ 11,7816, marking falls of $ 0.2029 or 1.72%.
Similarly, SSGC’s transmission price has been reduced from $ 9,7284 per year. MMBTU in June to $ 9,4713 in July, a fall of 2.64%. However, the distribution price has also fallen from $ 10.8650 per year. MMBTU for $ 10,5737, a reduction of $ 0.2913 or 2.68%.
