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Latest Petrol Price in Pakistan (December 2023)
As of December 1, 2023, the price of petrol in Pakistan is Rs281.34 per liter. The price of high-speed diesel (HSD) is Rs289.71 per liter.
Here are the prices of other fuels in Pakistan:
- Light-speed diesel: Rs175.93 per liter
- Kerosene oil: Rs201.16 per liter
The federal government announced revisions to petroleum prices on November 30, 2023. The new rates took effect on December 1.
Current Petrol, Diesel and CNG Rates (December 2023)
| Fuel Type | Previous Price (PKR) | Change | Current Price (Dec 2023) |
|---|---|---|---|
| Petrol | 281.34 | No change | 281.34 |
| High-Speed Diesel | 296.71 | Dropped by 7 | 289.71 |
| Light Diesel | 180.45 | Dropped by 4.52 | 175.93 |
| Kerosene | 204.98 | Dropped by 3.82 | 201.16 |
CNG rates for December 2023 are PKR 200 per kg in KP, Balochistan, Islamabad/Rawalpindi (Region I), and PKR 200 per kg in Sindh and Central Punjab (Region II).
Factors Influencing Fuel Prices in Pakistan
A lot goes into determining the prices we pay at the pump. Global crude oil prices play a major role, as oil is the raw material for gasoline, diesel, and other petroleum products. Local factors like refining, distribution, and marketing costs also have an impact. Oil companies’ profits and government taxes further add to retail fuel prices.
Depending on their financial situation, governments often provide subsidies to cushion the impact of high fuel prices on citizens. However, Pakistan lacks a consistent fuel subsidy policy. Neighboring countries like China, India, and Bangladesh have well-structured systems to manage fuel subsidies. Our government should consider a similar approach by provisioning for subsidies in the federal budget.
Tracking Petrol Price Trends in Recent Years
The COVID-19 pandemic disrupted oil demand and supplies globally, leading to major price fluctuations. Consumption dropped significantly during Pakistan’s lockdowns in mid-2020. Petrol hit a 10-12 year low of PKR 74.52 per liter in June 2020. Some regions also faced temporary fuel shortages.
As lockdowns eased and industrial activity resumed, oil demand and prices picked up. By the end of June 2020, petrol was selling at PKR 100.10 per liter – up PKR 25.58 in a matter of weeks.
Going into 2023, fuel rates continue their upward trajectory, crossing PKR 267 per liter currently. Economic uncertainty and high inflation are putting pressure on petroleum prices. We can expect further volatility in the coming months.
The Oil & Gas Regulatory Authority (OGRA) reviews market conditions and advises the government on the pricing of petroleum products. The final notified prices may vary based on the subsidy funding allocated.
Who Keeps Watch Over Pakistan’s Fuel Prices
The Oil and Gas Regulatory Authority (OGRA) was established by the Pakistani government in 2002 to oversee the country’s oil and natural gas sectors. Using data on supply, demand, and other vital economic factors, the OGRA puts together recommendations for adjusting domestic fuel rates.
Before any price changes can take effect, they must be signed off on by Pakistan’s Prime Minister. There is often back-and-forth negotiation between the administration and the OGRA to arrive at satisfactory pricing. So while the OGRA gathers the numbers and makes proposals, final authority lies with the PM’s office. Monitoring the fuel supply chains and keeping this key industry stable is a joint effort between the regulatory body and national leadership.