Have you noticed how quickly the tensions in the Middle East are rising? Such developments tend to raise the global oil prices, and since the start of the Iran-Israel conflict earlier this month, OPEC basket rates have increased sharply. To be precise, the basket price per barrel increased from $ 67.35/barrel on 10 June to US$ 77.44 on 19 June, which is a 15% increase within just 9 days.
Given rising OPEC basket rates and the recent tensions in the Middle East, it’s fair to ask: Might our next adjustment tip upwards?
It’s not certain, but there’s definitely a possibility that petrol and diesel prices could see a jump in the coming days. And that’s not all, there’s also talk of a carbon levy. The Petroleum Division has confirmed a proposed Rs. 2.50 per litre carbon levy, starting 1 July 2025.
However, it’s not a done deal. Parliamentary panels in both the Senate and National Assembly have rejected the measure, raising questions about whether it’ll make it will be implemented or not. Still, officials say the government is pushing ahead under the IMF programme terms, which makes the outcome unclear.
How much increase in petrol price can we expect? Well, as global oil prices have increased by nearly 15% (and are still increasing due to the ongoing conflict), a 15% increase in the petrol price will take the price to around Rs. 297 per liter from the current price of Rs. 258.43. I am sure that the government will have plans to tackle this situation, and the price would not rise to this level as it will impact the stabilized economy adversely.
As most of us know that the higher fuel prices don’t just affect how much we pay at the pump; they can also influence the cost of transport, groceries, and other daily essentials in some way too.
Friendly advice: While we wait, here’s a simple ask: use fuel wisely. Fill only what you need, drive sensibly, and avoid unnecessary idling.
Any guesses on how much fuel prices might increase starting July 1, 2025? Share with us in the comment section below.
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