Citing fluctuations in international crude oil prices, the Finance Division on Monday announced a hike in the petrol price by Rs8.36 per litre for the next fortnight, effective July 1.
On June 16, 2025, petrol rose by Rs4.80 per litre and high-speed diesel by Rs7.95.
With the latest increase, petrol will now cost Rs266.79 per litre, up from Rs258.43. The price of high-speed diesel (HSD) was also raised by Rs10.39, bringing it to Rs272.98 from Rs262.59 per litre, according to a notification.
International oil prices edged down on Monday as investors weighed easing Middle East risks and a possible OPEC+ output increase in August.
Both Brent and US crude oil benchmarks posted their biggest weekly declines since March 2023.
In another development, according to sources, the government has added a carbon levy of Rs2.50 per litre to the new fuel prices. The levy on petrol has been reduced to Rs75.52 per litre, while the levy on high-speed diesel has been set at Rs74.51 per litre.
The hike in the petroleum products prices comes a day after the Oil and Gas Regulatory Authority (Ogra) notified a 50% increase in fixed gas charges for domestic consumers for the fiscal year 2025-26, effective from July 1.
Petrol powers small vehicles, rickshaws, and bikes, making price hikes especially hard on middle- and lower-income households who depend on it for daily commuting.
In contrast, a substantial portion of the transport sector depends on high-speed diesel. Its price is considered inflationary due to its widespread use in trucks, buses, trains, and farm machinery, such as tractors and tube wells.
The increased cost of high-speed diesel directly contributes to the rising prices of vegetables and other essential food items.