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 2024
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 Type | Fuel Price Before Mid-Aug 2024 | Fluctuations | Fuel Price After Mid-Aug 2024 |
| Petrol | PKR // | // | PKR 260.96 |
| High-Speed Diesel | PKR // | // | PKR 266.07 |
| Light-Speed Diesel | PKR // | // | PKR 166.86 |
| Kerosene Oil | PKR // | // | PKR 186.86 |
Latest CNG Price in Pakistan for August 2024
Compressed Natural Gas (CNG) remains a highly popular fuel choice for vehicles in Pakistan. The country is divided into two regions for CNG supply: Region I, which includes Khyber Pakhtunkhwa, Balochistan, and the Potohar region (comprising Islamabad, Rawalpindi, and Gujar Khan), and Region II, covering Sindh and the lowlands of Punjab.
CNG prices vary between these regions. For your convenience, the latest CNG rates in Pakistan for August 2024 are provided below:
- CNG Price in Pakistan for August 2024 (Region I): PKR 200 per KG
- CNG Price in Pakistan for August 2024 (Region II): PKR 200 per KG
A Quick History of Petrol Prices in Pakistan
The global petroleum industry was severely impacted by the COVID-19 pandemic. Fuel demand plummeted worldwide, leading to an oversupply in the oil and gas sector. In Pakistan, fuel consumption dropped by 11% during the June-July fiscal year of 2019-2020, as strict lockdowns and the fear of contracting COVID-19 kept most people indoors.
The corporate sector introduced various work-from-home policies, and petroleum prices in Pakistan hit their lowest levels in a decade. In June 2020, petrol prices dropped to a record low of PKR 74.52 per litre. However, the strict lockdown measures also led to fuel shortages in some parts of the country.
Fortunately, these shortages were short-lived. By the latter half of 2020, the number of COVID-19 cases declined, and the government shifted from strict lockdowns to more sustainable, smart lockdown policies. Large-scale industries and businesses were allowed to resume operations while observing COVID-19 safety protocols. By the end of June 2020, petrol prices increased by PKR 25.58, bringing the cost up to PKR 100.10 per litre.
Given the ongoing economic uncertainty and rising global fuel demand, petroleum prices are expected to continue rising in the coming months. As of today, the petrol price in Pakistan is PKR 267 per litre. The year 2023 has seen a continued surge in fuel prices, driven by economic instability and rising inflation. Stay tuned for updates on the fluctuating petroleum prices in the country.
You might be wondering which authority is responsible for regulating the oil and gas sector in Pakistan and setting petroleum prices. The next section of our blog will provide the answers you’re looking for.
Which Authority Regulates the Oil and Gas Sector in Pakistan?
Oil and Gas Regulatory Authority (OGRA) regulates the fuel sector in the country
Founded in 2002 by the Government of Pakistan, the Oil and Gas Regulatory Authority (OGRA) is tasked with overseeing the regulation of the country’s fuel sector. OGRA closely monitors demand, supply, and the usage of key resources to prepare a detailed summary recommending changes in fuel prices in Pakistan.
However, these recommendations can only take effect if approved by the Prime Minister of Pakistan. If the Prime Minister rejects the proposal, the prices remain unchanged. Negotiations between the government and OGRA play a crucial role in finalizing these prices.
Now that we’ve covered the essential details about petrol prices in Pakistan and the key factors that cause them to fluctuate every month or two, it’s time to wrap up. If you have any questions or feedback about our blog, feel free to email us at blog@propertypoint.com.pk
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