With the declining economic conditions of Pakistan, petrol prices have taken a severe hit, causing financial strain on the citizens as it remains one of the country’s most popularly used fuels for vehicles. This has led to a rapid increase in transportation costs, influencing the affordability of daily commutes and living conditions.
If you want to know Pakistan’s current petrol prices, you have come to the right place. In this guide, I will discuss the current price and the factors contributing to its fluctuation. Therefore, keep reading to enlighten yourself.
Petrol Prices in Pakistan
Petrol prices have been subjected to continuous changes due to the COVID-19 pandemic, which has greatly influenced the international oil market. The continuous fluctuation in price has negatively impacted the business and consumers alike. Furthermore, the change financially burdens Pakistan’s already declining economic condition.
Petrol price rates in Pakistan are controlled and managed by the Oil and Gas Regulatory Authority (OGRA), an agency or organization of Pakistan’s Government. OGRA determines the changes in the price of petrol and is also in charge of informing the citizens about the price.
Furthermore, the government of Pakistan revises the price of petrol every 15 days; however, now the government has decided not to change the prices from 16th June to 30th June 2023. It means the petrol price will remain stable till the end of June’s month.
Petrol Price Today in Pakistan
According to the Oil and Gas Regulatory Authority (OGRA) agency, the price of petrol and other fuels will remain stable and will not change in June. The petrol price in Pakistan today is 305.00 PKR per liter. According to Finance Minister Shamshad Akhtar, the petrol price has been increased by PKR 13 liter.
|Fuel||Old Price PKR/Liter||New Price PKR/Liter||Increased/Decreased By|
High-Octane Petrol Price in Pakistan
The Oil and Gas Regulatory Authority (OGRA) does not manage or control the prices of High-Octane petrol; therefore, the price may vary across the country. Each petrol brand has its own standard price for High-Octane petrol.
Measurement of Petrol in Pakistan
In Pakistan, petrol is sold and measured in liters (L). Liter (L) is the metric unit of volume and is most commonly used to measure or calculate the volume of the liquid. The petrol price is expressed in Pakistan Rupees (PKR) per liter.
Moreover, petrol stations across Pakistan have fuel dispensers that show the petrol supplied in liters. In addition, when you purchase petrol, you are billed according to the volume of petrol you purchase. Therefore, you must keep track of the volume of the petrol you request.
Types of Petrol in Pakistan
There are various types of fuel across the world, such as premium, super, regular, etc., but in Pakistan, we only have two types of petrol. So what are these types, and what function do they have? Let me tell you about them one by one.
Before diving into the types of petrol, let me tell you about the RON ratings. You must have observed numbers like 95/98 RON above the petrol pumps, so what are these numbers? RON stands for Research Octane Number, a measurement utilized to explain fuel’s ability.
Additionally, these numbers indicate the performance level of petrol, meaning how easily the fuel will ignite within the vehicle’s engine. The higher RON rating means higher resistance to knocking and a higher performance rate.
Regular or V-Power Petrol
Regular or unleaded petrol, as the name suggests, refers to the commonly used fuel for vehicles. Furthermore, it typically has an octane rating of 92 to 93 RON. In addition, it is most suitable for vehicles with typical engine configurations and does not require higher RON ratings.
High-octane petrol has higher Research Octane Number ( RON) ratings than regular petrol and is more resistant to knocking in the car’s engine. Knocking refers to the pre-ignition of the air-fuel mixture in combustion chambers. This process can damage your vehicle’s engine and decrease the overall performance.
Therefore it is necessary to use fuel with an octane rating compatible with your vehicle. Because it is good for your vehicle’s health as well as for the environment. Moreover, the high-octane has a 97 RON rating and is more expensive than regular petrol.
Factors Contributing to The Petrol Price in Pakistan
Multiple factors contribute to the increase or decrease in petrol prices. Let’s dive deeper into these factors and learn how they affect petrol prices. Understanding these factors will give you insights into the dynamics of petrol pricing, allowing you to make an informed decision.
Crude Oil Prices Across World
Crude oil is traded worldwide and primarily used for producing various materials, including petrol. Since Pakistan imports crude oil from other countries, any changes or fluctuations in the price of crude oil internationally can impact the petrol rate in Pakistan. Furthermore, the increase or decrease in crude oil prices depends on various factors such as supply and demand, political and economic factors, and more.
In addition, the demand for crude oil is directly related to the fluctuation in petrol prices. If the demand increases, so will its price. Furthermore, any changes in the geopolitical situation, such as political tensions, war, etc., can also lead to a change in cost.
Currency Exchange Rate
The exchange rate refers to Pakistan’s currency in terms of another country’s currency, and it plays a big role in determining the cost of petrol in multiple countries. Pakistan relies heavily on imported crude oil, generally expressed in US dollars. Therefore, the transactions are conducted in US dollars.
The dependence on imported crude oil severely impacts Pakistan’s economy, especially regarding currency exchange rates. If the Pakistani Rupee is weakened compared to the US dollar, it will lead to higher imported crude oil costs, which can, in turn, affect the petrol price. Moreover, the exchange rate is determined by multiple factors, such as inflation, trading business, etc.
There were recent sharp boosts in US dollars which led to an increase in the price of petrol and gas in Pakistan.
Tax Imposed by Government
The Government imposes taxes on the citizens for the purpose of collecting revenues, stabilizing costs, or fulfilling social objectives. The price of petrol rests on the following factors:
General Sales Tax (GST): The government of Pakistan imposes a General Sales Tax (GST) on petrol and other taxable goods. In addition, it can fluctuate depending on government policies.
Petroleum Levy: It refers to the taxes imposed on petroleum products, and there will be an increase in the Petroleum Levy tax by 50 Rs.
Other Taxes: There might be other additional taxes, such as customs duty or taxes imposed due to specific energy projects, etc., which can affect the petrol price in Pakistan.
Availability of Petrol in the Market
Another crucial factor which contributes to the petrol cost is the supply and demand of petrol. There must be a balance between the supply of petrol and the consumers’ demand. If the demands are not met, it can affect the rate.
Furthermore, due to low domestic production, fluctuation in import volumes, and an increase in the consumption level, the demand for petrol may increase, which will put immense pressure on the petrol price. Therefore, the government should be ready at any time to tackle such issues.
International and Local Political Tensions
The political situation plays a significant role in impacting petrol or other material prices. Political tension at the international level, such as conflicts between different nations, sanctions, etc., greatly impacts the crude oil supply, which in turn influences the petrol rate in Pakistan since it depends on imported crude oil to satisfy its requirements.
What is the highest historical petrol price recorded in Pakistan?
The highest recorded petrol price in Pakistan was in May 2023, when the petrol rate reached 283.00 PKR per liter, marking a sharp increase compared to the old price rates.
What is the price of petrol in Pakistan today?
Today’s petrol price in Pakistan is 262.00 PKR per liter, and according to finance minister Ishaq Dar, the price will remain stable throughout June.
Who governs the petrol price in Pakistan?
The Oil and Gas Regulatory Authority (OGRA) is a government agency responsible for stabilizing and announcement of petrol rates to consumers. Therefore, the government of Pakistan controls and manages the petrol price rates.