By Tahir Subhani
The year 2021 was a pivotal period for Pakistan’s fuel economy, a year of two distinct halves. It began with cautious optimism as the world emerged from COVID-19 lockdowns, but ended with consumers facing the nation’s highest petrol prices at the time.
As global trade restarted and economic activities regained momentum, demand for petroleum products surged worldwide. This pushed international oil prices from depressed pandemic levels to over $85 per barrel by October—the highest since 2018. For Pakistan, a net oil importer, this translated directly into painful pump price adjustments.
This comprehensive guide documents every major price change in 2021, explains why prices moved so dramatically, and provides complete data for researchers, students, and anyone tracking Pakistan’s economic journey.
Now I want to share the whole year’s data about fuel prices from the start of January to December
| Metric | Value |
| Opening Price (1 Jan 2021) | Rs 106.00 per litre |
| Closing Price (1 Jan 2022) | Rs 144.82 per litre |
| Record High (5 Nov 2021) | Rs 145.82 per litre |
| Total Annual Increase | Rs 38.82 per litre |
| Percentage Increase | 36.6% |
| Lowest Point | Rs 106.00 (January) |
| Highest Point | Rs 145.82 (November) |
| Effective Date | Petrol Price (Rs/Litre) | Change | Key Event / Source |
| 1 Jan 2021 | 106.00 | – | Start of the year |
| 31 Jan 2021 | 111.90 | ▲ +5.90 | OGRA suggested a Rs13.18 hike; the government reduced the levy to limit the increase |
| 16 Jun 2021 | 110.69 | – | Pre-July price |
| 1 Jul 2021 | 112.69 | ▲ +2.00 | PM Imran Khan approved the July increase |
| 16 Jul 2021 | 118.09 | ▲ +5.40 | Major hike; OGRA had recommended a Rs11.40 increase |
| 1 Aug 2021 | 119.80 | ▲ +1.71 | August update |
| 16 Aug 2021 | 119.80 | No change | Prices kept unchanged |
| 1 Oct 2021 | 127.30 | ▲ +7.50 | October update |
| 16 Oct 2021 | 137.79 | ▲ +10.49 | Massive hike; global oil at $85/barrel |
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.
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 witnessed two major hikes:
Date | Price | Change | Context |
1 October 2021 | Rs 127.30 | ▲ +7.50 | – |
16 October 2021 | Rs 137.79 | ▲ +10.49 | Global oil at $85/barrel |
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.
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”.
Date | Price | Change |
16 December 2021 | Rs 140.82 | ▼ -5.00 |
The government provided relief by slashing prices by Rs5 per litre.
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.
Date | PSO Ex-Refinery Price | Consumer Price |
Before Oct 2021 | Rs 102.77 per litre | Rs 127.30 |
After Oct 2021 | Rs 112.57 per litre | Rs 137.79 |
The PSO ex-refinery price increased by nearly Rs 10 per litre in October 2021 alone, reflecting rising international crude costs.
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:
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.
Product | Typical Price Range (2021) | Premium over Standard |
Standard Petrol (RON 92) | Rs 106 – 145 | – |
High Octane (RON 97) | Rs 115 – 155 | Rs 8-12 per litre |
High octane was available at major PSO stations in Karachi, Lahore, and Islamabad throughout 2021, primarily marketed for:
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.
If you had searched for “Pakistan petrol price today in rupees 2021” on key dates, you would have seen:
Date | Price | Context |
1 January 2021 | Rs 106.00 | Start of the year |
1 July 2021 | Rs 112.69 | July increase |
16 July 2021 | Rs 118.09 | Mid-July hike |
16 August 2021 | Rs 119.80 | Unchanged |
16 October 2021 | Rs 137.79 | Major hike |
5 November 2021 | Rs 145.82 | Record high |
16 December 2021 | Rs 140.82 | Rs5 relief |
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.
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.
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.
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.
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.
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.
Throughout 2021, the government collected between Rs22 and Rs25 per litre in taxes:
Product | Price (1 Jan 2021) | Price (16 Dec 2021) | Annual Increase |
Petrol | Rs 106.00 | Rs 140.82 | ▲ +Rs 34.82 |
High-Speed Diesel (HSD) | Rs 110.24 | Rs 137.62 | ▲ +Rs 27.38 |
Kerosene Oil | Rs 73.65 | Rs 109.53 | ▲ +Rs 35.88 |
Light Diesel Oil (LDO) | Rs 71.81 | Rs 107.06 | ▲ +Rs 35.25 |
According to the Federal Bureau of Statistics, from October 2018 to October 2021:
Metric | October 2018 | October 2021 | Change |
Petrol Price | Rs 93.80 | Rs 138.73 | ▲ +49% |
LPG (11.67 kg cylinder) | Rs 1,536 | Rs 2,322 | ▲ +51% |
Electricity (per unit) | Rs 4.06 | Rs 6.38 | ▲ +57% |
Edible Ghee | Rs 171 | Rs 356 | ▲ +108% |
Sugar | Rs 54 | Rs 100+ | ▲ +83% |
This three-year perspective shows that 2021 was the culmination of a prolonged period of price increases across the entire economy.
In Pakistan, petrol prices are regulated by the government and notified through OGRA on a fortnightly basis. The final consumer price comprises six components:
Component | Description |
Ex-Refinery Price | Dependent on international crude/fuel prices |
Customs Duty | Built into import costs |
Petroleum Levy | Rs5-6 per litre in 2021 |
GST | 6-10% on different products |
Distribution Margins | OMC margins, dealer commissions |
Exchange Rate Adjustment | Currency fluctuations impact import costs |
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.
The government maintained it had no choice due to:
Minister for Information Fawad Chaudhry stated the government had “no choice” but to increase prices given international market rates.
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.
Date | Price | Significance |
1 Jan 2021 | Rs 106.00 | Start of the year |
1 Jul 2021 | Rs 112.69 | July increase |
16 Jul 2021 | Rs 118.09 | Major hike; OGRA had recommended Rs11.40 |
16 Oct 2021 | Rs 137.79 | Rs10.49 hike; global oil $85/barrel |
5 Nov 2021 | Rs 145.82 | Record high (at that time) |
16 Dec 2021 | Rs 140.82 | Rs5 relief |
1 Jan 2022 | Rs 144.82 | IMF-driven increase |
Petrol was priced at Rs 106.00 per litre on January 1, 2021.
Rs 112.69 on July 1, increasing to Rs 118.09 on July 16, 2021.
The highest price was Rs 145.82 per litre on November 5, 2021—a record at that time.
PSO consumer prices followed government notifications. The PSO ex-refinery price increased from Rs 102.77 to Rs 112.57 per litre after October 2021.
High octane (RON 97) was typically priced Rs 8-12 higher than standard petrol, ranging from approximately Rs 115 to Rs 155 depending on location and time.
Petrol increased by approximately Rs 38.82 per litre over the year, from Rs 106 in January to Rs 144.82 by January 1, 2022.
Key factors included: a global oil price recovery to $85/barrel, rupee depreciation to Rs 1733/USD, IMF-mandated increases in petroleum levies, and a post-COVID demand surge.
The October 16, 2021, increase of Rs 10.49 per litre was the largest single hike.
Yes. On December 15, 2021, the government slashed prices by Rs5 per litre, bringing petrol down to Rs140.82.
From October 2018 to October 2021, petrol prices increased by 49% from Rs93.80 to Rs138.73 per litre.