Pakistan, June 28 -- KARACHI - Fuel prices in Pakistan are expected to rise from July 1 due to surging global oil rates, although the hike may be softened if the government lowers petroleum levies temporarily.

According to Arif Habib Limited (AHL), international diesel prices jumped 10.3% to $87.18 per barrel in the second half of June, while petrol rose 5.8% to $78.42 per barrel. This surge follows earlier tensions between Israel and Iran that pushed crude oil prices upward globally.

However, a ceasefire agreement on June 24 eased global concerns, leading to a slight dip in fuel prices. Diesel prices fell by 0.6%, and petrol dropped by 6.6%, bringing cautious optimism for a possible price correction in mid-July.

Locally, AHL expects d...