Petrol Price in Pakistan Today
Petroleum (commonly referred to as crude oil) is a naturally occurring liquid found under the Earth’s surface that comes from the decomposition of organic matter over an extended period. As a fossil fuel, petroleum undergoes refining processes at special refineries.
Some common types of petroleum in Pakistan are as follows:
Petrol (super), High-speed diesel, speed diesel, kerosene, Liquefied petroleum gas (LPG), and compressed Natural gas are among the various forms of petroleum that we will examine here. Each will offer consumers their latest pricing.
Petrol (Super) Price in Pakistan Super petrol, also referred to as premium, features an increased octane rating that can deliver improved engine performance for bikes and cars alike. According to recent updates, its price in Pakistan stands at PKR 256.13.
High-Speed Diesel Price in Pakistan
Commercial vehicles usually utilize high-speed diesel to achieve RPMs of 7500 or above, making them suitable for heavy-duty cars, trucks, and buses. As per recent updates, its cost in Pakistan stands at PKR 260.95.
Light Speed Diesel Price in Pakistan
Light-speed diesel prices in Pakistan typically operate on medium-sized vehicles that require more power than personalized used cars. The current light-speed diesel price in Pakistan stands at Rs.148.95.
Kerosene Oil Price in Pakistan
Kerosene Oil Price in Pakistan Kerosene is in great demand across Pakistan’s petroleum industries, where it powers small machines and equipment. It currently commands an approximate cost of PKR 161.66 in Pakistan.
LPG Price in Pakistan
Pakistan imports liquefied natural gas (LNG), from which liquefied petroleum gas (LPG) is created. LPG serves two functions in Pakistan—it can serve both vehicle fuel requirements and household natural gas requirements simultaneously. As of December 1, 2023, LPG pricing stands at Rs 254.86 per kg in Pakistan.
CNG Price in Pakistan
Compressed Natural Gas (CNG) is an alternative fuel made up of methane extracted from natural gas that has been compressed for storage and transportation purposes, typically reaching pressures between 3,000 to 3,600 psi for storage and transportation purposes. CNG costs less than diesel.
High Octane Petrol Price in Pakistan
Pakistan boasts some of the highest petrol prices worldwide due to the superior quality and performance benefits that high-octane petrol offers. This fuel commands a significant premium due to its increased costs due to demand.
Note: Since OGRA does not dictate Hi-Octane petrol prices in Pakistan, their costs vary between petrol stations.
Highest Petrol Rate in Pakistan
Pakistan experienced its highest petrol price – Rs 331.38 per liter on September 16, 2023 – but prices can sometimes fluctuate around Rs 230 when there is strong global demand for petroleum products, such as currently.
Pakistan Adopts Euro V Fuel Emission Standards
Pakistan has officially implemented the Euro V emission standards to increase the engine performance of vehicles while creating a greener environment for future generations of Pakistanis.
Prior to 2012, Pakistan adopted Euro II Emission Standards when these had already become outdated. Since then, Pakistan has abandoned Euro III and Euro IV standards in favor of Euro V standards which were first introduced in 2009 in other countries. Many nations are currently following Euro VI Emission Standards with plans to switch over to Euro VII around 2025.
Fuel and Petrol Prices in 2018 and Beyond Oil prices fluctuate with the value of Rupee in international markets; due to devaluation in 2018, global oil prices have also seen an upsurge here in Pakistan.
In 2021, Pakistan attempted to regulate petrol prices by decreasing tax margins; although effective, this strategy only provided short-term relief. Issues such as these are common among developing nations like Pakistan that heavily rely on imported oil – often leading to inflation of prices that make purchasing petrol difficult for consumers.
OGRA regulates petrol rates in Pakistan. Their practice involves revising all fuel prices twice monthly. New prices are usually announced around the 15th and last day of each month and remain in effect for approximately 15 days thereafter.
Historical Background of Petrol Rate
Prior to 1990, people driving cars relied solely on fuels due to CNG being developed after 1990. Though fuel was easier for most people, its costs have steadily been increasing over time – particularly during Zardari’s regime when petrol prices peaked; but subsequent price decreases during Nawaz Sharif’s rule due to instability posed by an interim constitution left its impact felt later on.
Over time, petrol prices in Pakistan have remained consistent due to regulations set by OGRA (Oil and Gas Regulatory Authority). Prices may differ depending on various factors such as the economic condition of Pakistan, geopolitical influencers, or government policies; however, you can check them here on PakTodayInfo for yourself.
Reasons For Petrol Price Increase
Petrol prices fluctuate greatly and pose serious threats to both consumers and national economies alike. Fuel rates also tend to shift with changes in international petroleum prices.
Pakistanis demand gasoline for transportation, energy production, and economic expansion purposes. Gasoline taxes generated revenue that help finance economic development projects. On the contrary, however, petrol prices continue to increase for various reasons, such as:
International Crude Oil Prices
One significant cause of rising petrol prices is international crude oil costs. Other influences also contribute, such as economic conditions or supply and demand dynamics of goods.
Exchange Rates
Exchange rates have an enormous influence on petrol prices as crude oil costs are measured in US dollars. Local currency demand relates directly to its counterpart; as demand drops relative to US dollars, petrol prices will automatically increase accordingly.
Taxes
Governments typically impose taxes on petrol prices to raise overall revenue; the rates vary by country.
Refining Cost
Another factor contributing to rising petrol prices is refining costs.
Distribution Cost
The distance between retail sources and refining companies directly impacts fuel prices; additionally, transportation expenses play an integral part.
Controlling Petrol Prices
Maintaining affordable petrol prices can be challenging due to external influences like crude oil prices. Pakistan’s government can assist by offering subsidies and adjusting taxes and levies that impact petrol importation while stabilizing importation by reserving oil supplies for importation purposes.
The Organization of Petroleum Exporting Countries (OPEC) can control supply by improving extraction and refining techniques, which in turn can lower overall costs; however, complete control is not possible.
How Can Petrol Prices Affect The Economy?
Petrol prices impact our economy as a whole and have an immediate effect on consumer usage or spending decisions, inflation rates, employment levels, and foreign trade indicators.
Impact of Inflation Petrol prices have an enormous influence on inflation due to increased consumer demand and transportation costs; with each rise in cost comes decreased household purchasing power and thus reduced buying power.
Influences On Consumer Spending Rising petroleum product costs hurt consumer spending habits. They may put strain on drivers’ budgets, forcing them to reduce or restrict spending altogether.
Businesses rely heavily on fuel as an energy source, with product costs increasing as companies purchase more of what they need for production purposes. These cost increases could potentially be passed along to consumers at higher costs.
Energy Efficient Cars Or Vehicles
With rising petrol prices, people have increasingly turned to public transport or hybrid or electric cars to lower long-term fuel costs. These options may help individuals save both money and emissions.
Impact on Trade Balance Fuel imports can adversely impact a country’s trade balance. High fuel costs can drive up import bills, add to the country’s external debt load, and affect currency exchange rates.
