Petrol and Diesel Prices in Pakistan, today

The latest figures for petrol and diesel prices in Pakistan are:

Prices in effect from 1 July, 2024

Fuel Prices in Pakistan

Fuel prices are crucial for a country’s economic growth, as fluctuations in rates directly influence inflation levels.

Previously, oil prices were adjusted on a monthly basis. However, the government has now implemented a fortnightly pricing mechanism for fuel products, transitioning from a price benchmark based on Pakistan State Oil (PSO) imports to the Platts indexes.

This shift from monthly to fortnightly reviews of petroleum product prices is a response to the oil industry’s demands and aims to protect it from inventory losses.

Pakistan has a variety of petroleum resources, which can be broadly categorised into different types based on their extraction and use. Here are the main types of petroleum found in Pakistan:

Crude Oil:
Light Crude Oil:: This type of oil has a low density and can be refined into a wide range of products, including gasoline and diesel. It is easier and cheaper to process compared to heavier oils.
– Heavy Crude Oil: This oil is denser and more viscous, making it harder to extract and refine. It often requires more complex processing techniques.

Natural Gas:
– Conventional Natural Gas (CNG): Found in traditional reservoirs, this gas is relatively easy to extract and process.
– Non-Conventional Natural Gas: Includes shale gas, tight gas, and coal bed methane, which require advanced extraction techniques such as hydraulic fracturing.

Refined Petroleum:
– Petrol (Super): A light hydrocarbon liquid used primarily as fuel in internal combustion engines.
– Diesel (Light-speed and high-speed): Heavier than gasoline, used in diesel engines, common in trucks, buses, and machinery.
– Kerosene: Used as a fuel for jet engines, heating, and lamps.
– Fuel Oil: Used in power plants and ships.
– Liquefied Petroleum Gas: A mixture of propane and butane used for heating, cooking, and in some vehicles.

Major Petroleum Producing Areas in Pakistan
– Sindh: Major oil fields include Badin and Kandhkot.
– Punjab: Key fields include the Potwar region.
– Balochistan: Notable fields include the Sui gas field.
– Khyber Pakhtunkhwa (KPK): The Kohat basin and other areas contribute significantly to production.

Exploration and Production Companies
Several companies are involved in the exploration and production of petroleum in Pakistan, including:
– Pakistan Petroleum Limited (PPL)
– Oil and Gas Development Company Limited (OGDCL)
– Pakistan Oilfields Limited (POL)
– Mari Petroleum Company Limited (MPCL)

These companies play a crucial role in developing and managing the country’s petroleum resources, contributing to the national energy supply and economy.

Petrol Prices in Pakistan

Super petrol, with a higher octane rating, ensures excellent engine performance and is widely used in bikes and cars.

High-Speed Diesel Price in Pakistan

High-speed diesel is primarily used in commercial vehicles, capable of reaching 7500 RPMs. It is ideal for heavy-duty cars, trucks, and buses.

Light-Speed Diesel Price in Pakistan

Light-speed diesel is generally used in medium-sized vehicles that require more power than personal vehicles.

Kerosene Oil Price in Pakistan

Kerosene oil is in high demand in the petroleum industry, commonly used to power small machines and equipment.

LPG Price in Pakistan

Liquefied Petroleum Gas (LPG), derived from imported Liquefied Natural Gas (LNG), serves dual purposes in Pakistan. It is used as vehicle fuel and meets household energy needs.

Compressed Natural Gas (CNG) Price in Pakistan

Compressed Natural Gas (CNG), a clean-burning alternative fuel mainly composed of methane, is compressed to reduce its volume for storage and transportation. It is a cost-effective fuel option compared to diesel. The price of CNG varies regionally.

High Octane Price in Pakistan

High octane petrol, known for its superior quality and performance benefits, is among the highest-priced petrol products globally. Note that the Oil and Gas Regulatory Authority (OGRA) does not control high-octane petrol prices, leading to variations across different petrol stations.

Highest Petrol Rate in Pakistan

The highest petrol price recorded in Pakistan was PKR 331.38 per liter on September 16, 2023. Prices often hover around the PKR 230 mark during periods of high global demand for petroleum products.

Euro Fuel Emission Standards in Pakistan

Pakistan has adopted Euro V emission standards to enhance vehicle engine performance and promote environmental sustainability. Initially, Pakistan adopted Euro II standards in 2012, which were already outdated. Skipping Euro III and Euro IV, the country adopted Euro V standards in 2020, aligning with global practices introduced in 2009. Many countries have been following Euro VI standards since 2014 and are expected to transition to Euro VII around 2025.

Petrol Price Trends Since 2018

The petrol price trends in Pakistan since 2018 have shown a significant upward trajectory, driven by various global and local factors. Fluctuations in the international oil market significantly impact local petrol prices. Events like the Russia-Ukraine conflict have had substantial effects on oil prices globally. The depreciation of the Pakistani Rupee against the US Dollar has made oil imports more expensive, contributing to higher local petrol prices. Taxation and regulatory measures by the Pakistani government also play a crucial role in determining petrol prices. Variations in domestic demand and supply dynamics can also influence price trends.

OGRA revises fuel prices twice a month, announcing new prices on the 15th and last day of each month, effective for the next 15 days.

Historical Background of Petrol Prices

In the 1990s, petrol was the primary fuel for vehicles, with the cost gradually rising over the years. Petrol prices declined considerably during Nawaz Sharif’s tenure as prime minister. Currently, OGRA sets and regulates oil prices, which can vary due to economic conditions, geopolitical factors, and government policies.

Reasons Behind Petrol Price Increases

Several factors contribute to the fluctuation of petrol prices, including:

• International Crude Oil Prices: Global economic conditions and supply-demand dynamics impact crude oil prices.
• Exchange Rates: Crude oil costs are measured in US dollars, so the local currency’s value relative to the dollar affects petrol prices.
• Taxes: Government-imposed taxes on petrol rates vary from country to country, influencing overall prices.
• Refining Costs: Converting crude oil into petroleum products incurs costs that contribute to price increases.
• Distribution Costs: The distance between the refining company and the retail source impacts transportation costs, affecting fuel prices.

Controlling Petrol Prices

Controlling petrol prices is challenging due to global factors like crude oil prices. The Pakistani government can offer subsidies, adjust taxes and levies, and stabilize petroleum imports. OPEC can also manage petroleum supply and advancements in oil extraction and refining to reduce costs, although complete control is unattainable.

Economic Impact of Petrol Prices

Petrol prices significantly influence the economy, affecting consumer spending, business costs, and economic indicators like inflation and foreign trade.

• Inflation: Higher petrol prices increase transportation costs, leading to inflation and reduced household purchasing power.
• Consumer Spending: Increased petroleum costs strain drivers’ budgets, reducing discretionary spending.
• Business Costs: Businesses reliant on transportation face higher costs, which may be passed on to consumers.
• Energy-Efficient Vehicles: High petrol prices encourage the use of public transport, hybrid, or electric vehicles, leading to long-term fuel savings.
• Trade Balance: High fuel prices impact the import bill, increasing external debt and influencing currency exchange rates.