Govt Imposes Fresh Petrol and Gas Price Hikes from July 1
In a fresh wave of price adjustments effective July 1, the federal government has simultaneously increased prices of petroleum products and natural gas across all consumer categories, compounding the financial strain on households and businesses already grappling with high inflation.
According to a notification issued late Monday by the Finance Division, the price of petrol has been raised by Rs8.36 per litre to Rs266.79, while high-speed diesel (HSD) has gone up by Rs10.39 to Rs272.98 per litre. The hike, based on recommendations from the Oil and Gas Regulatory Authority (OGRA) and relevant ministries, took immediate effect and is attributed to volatile international oil markets and currency fluctuations.
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This marks the second fuel price revision in just over two weeks. On June 15, petrol and diesel prices were increased by Rs4.80 and Rs7.95 per litre, respectively. Fuel prices in Pakistan are reviewed fortnightly and are typically adjusted in line with global crude trends and the rupee’s exchange rate.
In a parallel development, OGRA has also notified a sharp increase in gas tariffs, also effective from July 1. Domestic consumers now face revised rates ranging from Rs200 to Rs4,200 per MMBTU, depending on usage levels and whether they fall under protected or non-protected categories. Protected consumers—typically low-income households—will pay between Rs200 and Rs350 per MMBTU, along with a fixed monthly charge of Rs600. Non-protected users face significantly higher charges, with unit rates up to Rs4,200 and monthly fixed fees of Rs1,500 to Rs3,000 for higher consumption brackets.
The new gas pricing structure also extends to commercial and industrial sectors. CNG stations will pay Rs3,750 per MMBTU, while commercial consumers will be charged Rs3,900. Cement factories now face the highest industrial rate at Rs4,400 per MMBTU. Fertilizer plants, educational institutions, hospitals, and government bodies also saw steep hikes, with K-Electric and other power producers being charged Rs1,225 per MMBTU.
The revised tariffs—approved earlier by the Economic Coordination Committee (ECC)—are part of broader fiscal reforms under Pakistan’s economic stabilization program, backed by the International Monetary Fund. While officials argue these measures are necessary to recover costs and reduce subsidies, the simultaneous hikes in fuel and gas prices are expected to further elevate the cost of living and increase input costs across industries.
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