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Understanding the Fluctuations in Petrol Prices in Pakistan



petrol price in Pakistan


Petrol, a lifeline for transportation and a key factor in the economic growth of any country, has always been a topic of concern for both citizens and policymakers in Pakistan. The fluctuating petrol prices in Pakistan have been a subject of debate and discussion for years. In this blog, Explore It Beyond will discover the reasons behind the constant oscillations in petrol prices in Pakistan from 2019 to 2023.

Understanding the Mechanism

To comprehend why petrol prices in Pakistan today are in a perpetual state of flux, it is crucial to understand the mechanism that governs them. Petrol prices in Pakistan are determined primarily by the international market, currency exchange rates, and local taxes. These factors are interconnected and can change rapidly, leading to frequent adjustments in petrol rates.

International Oil Prices

Petrol is a globally traded commodity, and its prices are heavily influenced by the international oil market. Any disruptions in oil supply, geopolitical tensions, or production cuts by oil-producing countries can lead to significant fluctuations in oil prices. Pakistan imports a substantial portion of its crude oil, which means that any changes in international oil prices directly impact petrol prices in Pakistan.

Currency Exchange Rates

The value of the Pakistani Rupee (PKR) against the US Dollar (USD) plays a critical role in determining petrol prices. Since oil is priced in USD worldwide, a weaker PKR results in higher petrol prices. Currency exchange rates can fluctuate due to various economic factors, including inflation, interest rates, and foreign exchange reserves.

Local Taxes and Levies

Another factor contributing to the ever-changing petrol prices in Pakistan is the imposition of taxes and levies by the government. These taxes can vary depending on the economic policies of the government in power. Federal excise duty, general sales tax (GST), and petroleum development levy (PDL) are some of the taxes that directly affect petrol prices.

The Chronology of Petrol Prices in Pakistan (2019-2023)


The year 2019 witnessed significant fluctuations in petrol prices in Pakistan. The government introduced a monthly revision system, aligning domestic prices with international market rates. This move aimed to reduce the burden on the national treasury while ensuring that consumers paid a reasonable price for petrol. However, it also meant that petrol prices were more susceptible to international market volatility.


In 2020, the COVID-19 pandemic wreaked havoc on the global economy, including the oil market. As demand plummeted due to lockdowns and travel restrictions, oil prices hit historic lows. This resulted in a brief respite for consumers as petrol prices in Pakistan decreased. However, the relief was short-lived as prices began to rise again later in the year.


By 2021, fuel price in Pakistan were on a roller-coaster ride. Global economic recovery and increased demand for oil led to a surge in international oil prices. Simultaneously, the PKR depreciated against the USD, exacerbating the situation. The government faced a daunting task of balancing fiscal responsibilities with the affordability of petrol for citizens.


The year 2022 continued to be challenging for fuel price in Pakistan. The government introduced measures to stabilize prices, such as reducing taxes temporarily. However, these measures were often insufficient to counteract the impact of rising international oil prices.


As of 2023, there has been plenty of news about increase in petrol prices in Pakistan. Fuel price in Pakistan continue to fluctuate due to the complex interplay of international oil prices, currency exchange rates, and domestic policies. The government remains committed to finding a balance that ensures economic stability while keeping petrol affordable for the masses.


Fuel price in Pakistan are inherently volatile due to their dependence on international oil markets, currency exchange rates, and local taxes. While efforts have been made to introduce mechanisms for more transparent and frequent price adjustments, consumers and policymakers must remain vigilant in managing the challenges posed by these fluctuations. As Pakistan navigates its way through the intricacies of global energy markets, the quest for stable and affordable petrol prices remains a pressing concern for the nation.

You can follow Ministry of Energy (Petroleum Division) of Government of Pakistan to keep updated with fuel price in Pakistan.

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