Karachi: Domestic fuel prices in Pakistan are on the brink of a significant increase, with high-speed diesel (HSD) and motor spirit (MS) petrol set to rise by Rs. 27 and Rs. 21 per liter, respectively, starting July 1, 2025.

If implemented, the new prices will see petrol reaching approximately Rs. 279-280 per liter and high-speed diesel touching Rs. 289-290 per liter, marking a substantial jump from current rates.

The escalation is attributed to mounting regional tensions and escalating global oil prices, according to Arif Habib Limited.

The surge is driven by a sharp rise in international oil markets, where prices of Gas Oil and Gasoline have increased by 9.6% and 4.5%, respectively, since June 13, reaching USD 93.3 and USD 83.4 per barrel as of June 20.

The ongoing Israel-Iran conflict has heightened global geopolitical tensions, further fueling concerns over oil supply disruptions.

Earlier in June, the government announced a temporary price hike of Rs. 4.80 per liter for petrol and Rs. 7.95 per liter for diesel, effective from June 15, as part of measures to adjust for international price fluctuations.