Petrol Price in Pakistan 2021: Complete Year Review with Monthly Data

Monthly Price Details (Selected Months)

July 2021 saw two significant price revisions:

The government claimed it provided “huge relief” by not passing on the full OGRA-recommended increase. Special Assistant to PM Shahbaz Gill stated that the government would “endure the burden” to give maximum relief to the public.

Petrol Price in Pakistan August 2021

The government kept petrol and diesel prices unchanged for the second half of August, though kerosene and light diesel oil saw minor increases.

October 2021 – The “Petrol Bomb”

October 2021 witnessed two major hikes:

The Finance Division cited that oil prices had risen to around $85 a barrel, the highest since October 2018. This marked the first time in Pakistan’s history that all four major petroleum products were sold above Rs100 per litre.

November 2021 – Record High

This was the highest price in Pakistan’s history at that time. Opposition parties strongly criticized the move, with PML-N President Shehbaz Sharif describing it as a “petrol bomb exploded on the masses”.

December 2021 – Year-End Relief

The government provided relief by slashing prices by Rs5 per litre.

PSO Petrol Price in Pakistan 2021

Pakistan State Oil (PSO) is the country’s largest oil marketing company, and its prices align with government-notified rates. However, the ex-refinery price that PSO pays provides insight into the cost structure.

PSO Ex-Refinery Price Evolution

The PSO ex-refinery price increased by nearly Rs 10 per litre in October 2021 alone, reflecting rising international crude costs.

PSO’s Role

As the state-owned enterprise responsible for ensuring fuel security, PSO’s import decisions directly impact national supply. During 2021, PSO faced challenges due to:

• Soaring international oil prices
• Rupee depreciation (dollar reached Rs173 by Q3 2021)
• Rising freight and insurance costs

High Octane Petrol Price in Pakistan 2021

High Octane (typically RON 97) is a premium fuel variant available at select PSO and other OMC pumps. While standard petrol (RON 92) prices are heavily regulated and subsidized, high octane follows a different pricing mechanism.

High Octane Pricing Context

Availability

High octane was available at major PSO stations in Karachi, Lahore, and Islamabad throughout 2021, primarily marketed for:

• High-compression imported vehicles
• Performance-oriented drivers
• Motorcycles with higher compression ratios

Note: Official government notifications typically cover standard petrol prices. High octane prices are set by individual OMCs based on market conditions and are generally Rs 10-12 higher than standard petrol.

Today’s Prices in 2021 Context

What “Petrol Price Today” Meant in 2021

If you had searched for “Pakistan petrol price today in rupees 2021” on key dates, you would have seen:

Comparison with 2026

For perspective, today’s prices (March 2026) stand at RS 321 per liter, more than double the 2021 peak, showing how dramatically the energy landscape has evolved.

Key Drivers of 2021 Price Volatility

1. Global Oil Price Recovery

After hitting pandemic lows in 2020, international oil prices recovered strongly in 2021. By October 2021, Brent crude had reached $85 per barrel—the highest since October 2018. OPEC+ producers maintained supply limits despite calls from the US to increase production.

2. PKR Depreciation

The Pakistani rupee came under severe pressure throughout 2021, crossing Rs173 to the dollar by Q3. Since oil imports are dollar-denominated, each rupee fall directly increases costs.

3. Massive Import Bill Surge

Pakistan’s oil import bill widened by over 97 percent to $4.59 billion in the first quarter of FY2022, compared to $2.32 billion the previous year. Crude oil imports rose by 81.15% in value despite a slight dip in quantity.

4. IMF Pressure and Petroleum Levy

Under the IMF program, the government committed to achieving a net fiscal adjustment of almost Rs550 billion during FY2021-22. Finance Minister Shaukat Tarin announced a Rs4 per litre monthly hike in petroleum levy, with the first increase taking effect on January 1, 2022.

5. Global Energy Crisis

2021 saw the first global energy crisis in decades, with natural gas, coal, and electricity prices exploding worldwide. European gas shortages, Chinese coal crises, and supply bottlenecks all contributed to upward pressure on petroleum products.

6. Tax Structure

Throughout 2021, the government collected between Rs22 and Rs25 per litre in taxes:

• Petroleum Levy: Ranged from Rs5-6 per litre
• GST: Approximately 6-10% on different products
• Customs Duty: Built into import costs

Petroleum Comparison – January vs December 2021

Three-Year Perspective (2018-2021)

According to the Federal Bureau of Statistics, from October 2018 to October 2021:

This three-year perspective shows that 2021 was the culmination of a prolonged period of price increases across the entire economy.

Government’s Pricing Mechanism Explained

How Petrol Prices Were Determined in 2021

In Pakistan, petrol prices are regulated by the government and notified through OGRA on a fortnightly basis. The final consumer price comprises six components:

Government’s Role

The government could absorb some impact by adjusting the petroleum levy and sales tax. In July 2021, for example, the government claimed to have given up Rs252.41 billion in potential petroleum levy revenue to keep prices lower.

Political and Public Reaction

Opposition Criticism

• Shehbaz Sharif (PML-N President): Described the November hike as a “petrol bomb exploded on the masses.”
• Sherry Rehman (PPP): Demanded immediate price reduction
• Mian Raza Rabbani: Warned that the “elite in the government” is pushing people towards desperation

Government’s Defense

The government maintained it had no choice due to:

• Rising international oil prices ($85/barrel)
• IMF program commitments
• The need to control the fiscal deficit

Minister for Information Fawad Chaudhry stated the government had “no choice” but to increase prices given international market rates.

Conclusion: The Year That Changed Expectations

The year 2021 shattered the notion that petrol would ever again be “cheap” in Pakistan. When prices crossed Rs145 per litre in November, many believed it was an unthinkable peak. Looking back from 2026, that number seems almost nostalgic.

For researchers, students, and policymakers, the data from 2021 provides invaluable insights into how multiple factors—global markets, currency, taxes, and geopolitics—converge to determine the price at the pump.

For ordinary Pakistanis, 2021 was the year they began to realize that the era of affordable fuel was ending, and the era of adaptation was beginning.

Quick Reference: Key 2021 Dates