KKN Gurugram Desk | The ongoing geopolitical tension between Iran and Israel has begun to show ripple effects across South Asia, with Pakistan facing a sharp spike in fuel prices. On Sunday night, the government of Pakistan announced a significant hike in petrol and diesel rates, burdening an already inflation-struck population.

While global crude oil prices surged past $75 per barrel, Pakistan’s petrol price was increased by PKR 4.80 per litre, and diesel saw a steep rise of PKR 7.95 per litre. As of today, petrol in Pakistan is retailing at PKR 258.43 per litre, while diesel has touched PKR 262.59 per litre, according to Shell Pakistan’s official website.

Iran-Israel Conflict Fuels Global Oil Surge

The Middle East, already a volatile region, is once again in the spotlight due to heightened conflict between Israel and Iran. This standoff has pushed global crude oil benchmarks into a volatile uptrend. The global oil supply chain, heavily dependent on the region, faces significant disruptions.

According to Bloomberg, Brent crude futures for August delivery rose by 1.37% to $75.25 per barrel, while West Texas Intermediate (WTI) July futures climbed 1.38% to $73.99 per barrel.

The implications are far-reaching, especially for oil-importing nations like Pakistan, which is grappling with currency devaluation, high fiscal deficits, and foreign exchange shortages.

 Petrol-Diesel Price Hike in Pakistan: A Blow to the Common Man

For the average Pakistani household, this latest fuel price hike has added another layer of financial distress. The country is already battling:

• Double-digit inflation

• An ongoing IMF program with tough economic conditions

• A weakening Pakistani Rupee

• Food and utility price surges

Transporters and trade unions have warned that increased fuel costs could lead to higher prices for essential goods, including vegetables, grains, and cooking gas. Small business owners, especially in rural areas, fear a slowdown in consumer demand due to rising transportation costs.

?? India Maintains Fuel Prices Despite Global Pressure

Contrary to Pakistan, India has not increased petrol or diesel prices, despite the global rally in crude oil. Oil Marketing Companies (OMCs) in India, including Indian Oil, Bharat Petroleum, and Hindustan Petroleum, have kept fuel prices steady since mid-May, likely due to domestic price buffers and political considerations.

 Current Fuel Prices in Major Indian Cities (as of June 16, 2025):

• New Delhi: Petrol ₹94.77/litre | Diesel ₹87.67/litre

• Mumbai: Petrol ₹104.21/litre | Diesel ₹92.54/litre

• Kolkata: Petrol ₹103.01/litre | Diesel ₹89.89/litre

• Chennai: Petrol ₹100.10/litre | Diesel ₹90.39/litre

 Cheapest Petrol Prices in India Today (June 16, 2025):

According to Indian Oil Corporation data, these are the Indian cities with the lowest petrol prices:

 Cities with Lowest Diesel Prices in India:

Despite the global pressure, India’s fuel price stability is attributed to:

• Central and state tax management

• Government price control strategies

• Diverse oil import contracts from countries beyond the Middle East

Expert Insight: What Lies Ahead for Global Fuel Prices?

Analysts warn that if Iran-Israel tensions continue or escalate, crude oil could breach the $80 mark, triggering a chain reaction of fuel hikes globally. South Asian nations like Bangladesh, Sri Lanka, Nepal, and Pakistan, which are highly dependent on imported oil, are particularly vulnerable.

Energy economist Dr. Rakesh Deshmukh told KKN Live,

“Pakistan is already on fragile economic ground. A spike in oil prices affects everything — logistics, agriculture, manufacturing. India is shielded for now due to strategic reserves and diversified oil sources, but even that has limits.”

 How the Iran-Israel Conflict Impacts Your Wallet

Tensions in the Gulf affect oil prices through three key channels:

1. Supply Disruption Fears: Closure of shipping routes like the Strait of Hormuz.

2. Speculative Trading: Increased buying in futures markets raises global prices.

3. Political Uncertainty: Fear of war leads oil-exporting nations to hold back supply.

With oil prices dictated not just by supply-demand equations but also by international tensions, countries like Pakistan are bearing the brunt. The latest surge in fuel prices is a direct outcome of volatile Middle East geopolitics, combined with domestic economic fragility.

While India remains insulated for now, continued pressure on crude markets may eventually impact domestic fuel pricing too. For citizens across the region, filling up the tank may soon cost more than ever before.

Stay with KKN Live for daily updates on global oil price trends, South Asia’s economic outlook, and how international events affect your daily life.