Petrol Price in Pakistan Today

As of October 1, 2024, the petrol price in Pakistan stands at PKR 247.03 per liter. This reflects a slight decrease from the previous price of PKR 249.10, marking a change of PKR -2.07. Other fuel prices have also seen adjustments: High-Speed Diesel (HSD) is now PKR 246.29, down from PKR 249.69, while Kerosene Oil costs PKR 158.47, decreased from PKR 169.62​.

Factors Influencing Petrol Prices

1. Global Oil Prices: The primary driver behind local petrol prices is the fluctuation in global oil markets. Events such as geopolitical tensions, production cuts by OPEC, and changes in supply and demand can significantly impact crude oil prices, which in turn affect petrol costs.
2. Local Taxes and Levies: The final price of petrol includes various government taxes such as:
   • Excise DutyGeneral Sales Tax (GST)Petroleum Development Levy (PDL)
   These taxes contribute a substantial portion of the total cost at the pump​
3. Government Policies and Subsidies: The Oil & Gas Regulatory Authority (OGRA) regulates fuel prices in Pakistan, typically reviewing them bi-monthly. However, significant changes in global prices or local economic conditions can prompt more frequent adjustments​.
4. Import Duties and Transportation Costs: The costs incurred in importing crude oil and transporting it to refineries and retail outlets also play a critical role in determining the price of petrol.
5. Market Dynamics: Seasonal demand, the exchange rate of the Pakistani Rupee against the US Dollar (since oil is traded internationally in USD), and overall economic conditions affect petrol pricing. A weaker Rupee generally leads to higher petrol prices​.

Historical Context

Historically, petrol prices in Pakistan have fluctuated significantly. The highest recorded price was PKR 331.38 per liter in September 2023. The government has made efforts to control petrol prices, but these measures have had limited success due to the volatile nature of global oil markets​

Economic Impact

The impact of petrol prices on the economy is profound. Higher petrol prices contribute to inflation, affecting the cost of transportation and, subsequently, the prices of goods and services. As petrol prices rise, consumer spending often shifts, leading to changes in economic behavior. Businesses that rely heavily on fuel for transportation also face increased operational costs, which can be passed on to consumers​.

For real-time updates and detailed analysis on petrol prices in Pakistan, you can visit Petrol Price in Pakistan.