Petroleum prices in a particular country or region are affected by a lot of factors. The cost of crude oil (the natural source of all petroleum by-products), refining, distribution and marketing costs, profits, and fuel taxes are some of the noteworthy factors.
Depending on the financial capacities of their respective economies, governments, especially in developing countries like ours, also subsidize fuel prices to ease up the financial burden on the general public.
In Pakistan, the federal government grants millions of rupees as subsidies to maintain fuel prices and provide relief to the common man. However, the country still lacks a consistent policy for the provision of fuel subsidies.
Asian countries like China, India, Bangladesh, Indonesia, and Malaysia have proper subsidy tools and management systems. Some of these countries even include fuel subsidies in their annual financial budgets, which our country should also do.
Petrol Price in Pakistan Today 2023
Now, let’s take a look at the latest fuel prices in Pakistan. The chart below shows you the current prices of the most commonly available petroleum by-products in the country, such as petrol, diesel, light diesel, and kerosene oil.
|Fuel Price Before Mid-December 2023
|Fuel Price After Mid-December 2023
|Decreased by PKR 14
|Decreased by PKR 13.5
|Decreased by PKR 11.29
|Decreased by PKR 10.14
The Latest CNG Price in Pakistan for December 2023
Compressed Natural Gas (CNG) is another highly popular fuel that powers vehicles in our country. Pakistan has been divided into two regions for CNG supply: Region I (Khyber Pakhtunkhwa, Balochistan, Potohar region including Islamabad, Rawalpindi, and Gujar Khan) and Region II (Sindh and lowlands of Punjab).
Prices of natural gas fuel may vary from region to region. For your reference, the latest CNG rates in Pakistan in both of these regions have been shared below. Take a look!
- CNG Price in Pakistan for September 2023 (Region I): PKR 200 per KG
- CNG Price in Pakistan for September 2023 (Region II): PKR 200 per KG
A Quick History of Petrol Prices in Pakistan
The coronavirus pandemic had a very negative impact on the global petroleum industry. The demand for fuel all over the world dropped significantly and left the oil and gas industry oversupplied. Fuel consumption in Pakistan also declined by 11% during the June-July fiscal year 2019-2020 as strict lockdowns were imposed and the fear of catching COVID-19 kept most people indoors.
Different types of work-from-home policies were announced by the corporate sector. Petroleum products in Pakistan were down to the lowest prices in the last 10 to 12 years. In June 2020, the price of petrol in the country reached a record low of PKR 74.52 per litre. Also, due to strict lockdown measures, some regions of the country also started reporting fuel crises.
Fortunately, these crises were short-lived. In the latter half of 2020, the number of coronavirus cases went down and the government shifted its focus from strict lockdown measures to smart and more sustainable lockdown policies. Observing COVID-19 SOPs, large-scale industries and business enterprises were allowed to resume their operations. And by the end of June 2020, the petrol price in Pakistan increased by PKR 25.58, which took its cost up to PKR 100.10 litre.
Due to the uncertain economic situation in the country and the rising demand for fuel in the international market, petroleum prices are expected to go further up in the coming months. As mentioned in the table above, PKR 267 is the petrol price in Pakistan today. 2023 continues to see skyrocketing fuel prices, mainly due to the uncertain economic situation and rising inflation. Keep checking back to stay updated with the fluctuating rates of petroleum products in the country.
Now, you may be wondering which authority is responsible for regulating the oil and gas sector in Pakistan and suggesting the prices of petroleum products. Well, the next section of our blog has the answer you’re looking for.
Which Authority Regulates the Oil and Gas Sector in Pakistan?
Founded in 2002 by the Government of Pakistan, the Oil and Gas Regulatory Authority (OGRA) is responsible for regulating the fuel sector in the country. Based on the demand and supply and usage of many other key resources, OGRA makes a comprehensive summary to suggest changes in fuel prices in Pakistan.
This summary can only be implemented if approved by the Prime Minister of Pakistan otherwise it is rejected and the prices remain unchanged. Negotiations between the government and OGRA are also a very important part of the process of finalizing prices.
Now that we have discussed all the key information about petrol prices in Pakistan and the key factors that cause them to fluctuate after every month or two, it’s time for us to wrap up. If you have any questions or feedback related to our blog, drop us an email at email@example.com.
On a side note, here are some more informative lifestyle blogs that you may like reading. Take a look!
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For more lifestyle updates and property-related blogs, keep reading Zameen Blog, the most popular lifestyle and real estate blog in Pakistan. Also, subscribing to our email newsletter is another good way to keep track of all our latest blog posts.