We are well aware that like several other commodities, Pakistan is a price-taker country for oil. Petroleum is one of the major fuels of Pakistan. Many Industries in Pakistan use Petrol. Mainly, it is the running fuel of most of the vehicles around the globe as well as in Pakistan. The government sets the prices of petrol to achieve numerous objectives. Therefore, minor changes in petrol prices may occur with time. The government also provides some sort of subsidy on the oil prices. But, it may depend on the import price of crude oil. Due to the unstable economy of Pakistan, there are some reasons for the increase in petrol prices. In addition, Pakistan is also bound to the International Monetary Fund (IMF).
Petrol Price in Pakistan Today 2024
It is practically not possible to tell if petroleum prices are either subsidized or taxed by simply looking at their actual prices. However, there are many stages at which the petrol prices become increased but its effect is hard to gauge. The cost of petroleum affects many aspects of human life and the major one among them is the transportation system. The price of petrol is at regular fluctuations because of the global market dynamics and government policies. By knowing the petrol prices today, you can make future decisions about fuel consumption and financial planning. Stay updated with the latest fuel prices in Pakistan with our website.
Reasons for Increase In Petrol Prices
The most important factor which affects the petrol price is the cost of crude oil. Indeed, it is the raw material Pakistan imports to produce petrol. The International Market affects crude oil prices by various factors including economic conditions, geopolitical tensions, and supply and demand. We bought crude oil in US dollars. So, the exchange rate between the Pakistani currency and US dollars also influences the price of petrol. In addition, crude oil is refined into petroleum and it affects the petrol price. During the last two years, Petrol prices in Pakistan have increased a lot. The one other reason for this is also the agreements of the previous government with the IMF. Moreover, the government imposes different taxes to generate more revenue. Therefore, taxes also increase the price of petroleum.
Petrol Rate In Pakistan
The first thing is the base price or ex-refinery price of petrol per liter. Since, it is the actual cost of the imported and refined finished petroleum per liter. Second is the retailer cost which includes the profits of oil marketing companies and the commission of the dealers. So, the consumer’s price of petrol per liter is determined by adding the ex-refinery price, retailer price, foreign cost, and taxes imposed by the government.
Other Fuels In Pakistan
Along with the petroleum, there are many other fuels used in Pakistan. But petroleum is the most common fuel. Fractional Distillation of crude oil produces petroleum. There may be some frequent changes in petrol prices in Pakistan which you can find here easily. The other major fuel products used in Pakistan nowadays are Petrol, Diesel, Kerosene Oil, LPG, and CNG.
High Octane Petrol Price In Pakistan
Octane number helps us to determine the quality of petrol. It tells us to how much extent the petrol can resist knocking and gives us good efficiency. Petrol having high octane numbers is usually of better quality and more expensive. For a long period, Pakistan has been using low-grade petrol due to the lack of resources. Even the most developing countries are now using finer quality petrol for their automobiles. Therefore, Pakistan has also started importing better quality petrol with a higher research octane number of approximately 92 to be extant. Most of the oil-providing companies in Pakistan refine petrol for RON of 95 to 97.
Reputable Petrol Providing Companies In Pakistan
There are numerous oil refining companies in Pakistan. These Oil refining companies are mainly responsible for most of the oil distribution all over Pakistan. The names of some major companies are as follows:
- Pakistan State Oil Company (PSO)
- Attock Petroleum Limited
- Total Parco
- Shell Pakistan
- Saudia Arabian Oil Company
Overview of Petrol Prices in Pakistan
Petrol price is a topic of significant discussion among the Pakistani media and people. In 2021, the government of Pakistan tried to decrease petroleum prices by reducing the volume of taxes. In Pakistan, the international market plays a major role in determining the price of petrol. Since 2018, due to the devaluation of the Pakistani rupee, the prices of petrol have increased a lot. This leads to inflation in the oil prices and it becomes difficult for the common people to buy petrol due to its huge prices. The Oil and Gas Regulation Authority (OGRA) controls the oil prices of Petrol in Pakistan. OGRA has a practice of revising petrol prices twice a month. The prices of petrol may vary among different cities of Pakistan. But we hope to have some sort of subsidy and decrease in the taxes on petrol prices in future for the benefit of people.