A number of factors affect petroleum prices in a particular country or region. Among the most notable factors are crude oil prices, refining costs, distribution and marketing costs, profit margins, and fuel taxes. As a result, in developing countries including Pakistan, governments tend to subsidize petrol prices to keep the general public’s financial burden down.

Millions of rupees are granted as subsidies by the Pakistani government, in order to maintain fuel prices and provide relief to the common man. Inspite of this, the country does not have a consistent policy on fuel subsidies.

PETROL PRICES IN NOVEMBER 2021

On Thursday, the government increased the prices of petroleum products by up to Rs8.14 per litre under the pretext that the consumer relief earlier provided to them had weakened the fixed levy budget by Rs132.5 billion for the first quarter of the fiscal year 2020-21.

According to a press release by the Finance Division:

In the previous petroleum prices recommended by OGRA , a significant relief was provided to consumers. This has dented the Petroleum Levy budget of Rs152.5 billion July-September of 2021 as compared to Rs20 billion realised only.

Updated Petrol Prices – November 2021

Fuel Type Fuel Price November Fluctuations Fuel Price October
Petrol PKR 145.82 Increased by PKR 8.03 PKR 137.79
Diesel PKR 142.62 Increased by PKR 8.14 PKR 134.48
Light Diesel PKR 114.07 Increased by PKR 5.72 PKR 108.35
Kerosene Oil PKR 116.53 Increased by PKR 6.27 PKR 110.26

PETROL PRICES IN PAKISTAN – OCTOBER, 2021

Below is the list of the latest prices for the most commonly used petroleum by-products, such as petrol, diesel, light diesel, and kerosene oil.

Fuel Type Fuel Price from 16th Oct. Fluctuations Fuel Price up till 15th Oct.
Petrol PKR 137.79 Increased by PKR 10.49 PKR 127.30
Diesel PKR 134.48 Increased by PKR 12.44 PKR 122.04
Light Diesel PKR 108.35 Increased by PKR 8.84 PKR 99.51
Kerosene Oil PKR 110.26 Increased by PKR 10.95 PKR 99.31

Recently, OGRA suggested an increase of Rs11.53 in fuel prices. In a statement released by the Prime Minister’s Office, the PM stated that the burden of rising fuel prices in the international market would not fall on the people as providing citizens with relief will be our top priority.

The petrol and diesel prices in the country will remain unchanged for 15 days.

CURRENT CNG PRICE IN PAKISTAN FOR OCT-NOV 2021

Besides Petrol, another highly popular fuel powering vehicle in our country is Compressed Natural Gas (CNG). CNG fuel prices may vary depending on the region i.e, Region I (Khyber Pakhtunkhwa, Balochistan, Potohar region including Islamabad, Rawalpindi, and Gujar Khan) and Region II (Sindh and lowlands of Punjab). Let’s take a look at current CNG prices in Pakistan.

CNG Price in Pakistan for Oct. 2021

  • Region I:  PKR 124 per KG

  • Region II: PKR 139 per KG

WHO REGULATES OIL AND GAS PRICES IN PAKISTAN?

The Oil and Gas Regulatory Authority (OGRA)  is responsible for regulating the fuel sector in the country. OGRA makes a comprehensive analysis for a change in the petrol prices in Pakistan based on the demand, supply, and usage of other key resources.

In order for this summary to be implemented, it must be approved by the Prime Minister of Pakistan; otherwise, it is rejected and prices remain the same. As part of the process of deciding prices, negotiations between the government and OGRA play a very important role.

PETROL PRICES IN PAKISTAN: A QUICK HISTORY

There was a very negative impact on the global petroleum industry caused by the Coronavirus pandemic. Globally, the demand for fuel has dropped significantly, resulting in an oversupply in the oil and gas industry. During the June-July fiscal year 2019-2020, fuel consumption in Pakistan decreased by 11% due to the strict lockdowns and the fear of catching COVID-19.

Companies have announced different types of work-from-home policies. Pakistan’s petroleum prices were at their lowest points in the past 10 to 12 years. A record low price of PKR 74.52 per liter of petrol was seen in June 2020. In addition, some regions of the country also reported fuel shortages due to the lockdown.

However, this situation was short-lived. As the number of Coronavirus cases dropped in the second half of 2020, the government shifted its focus from strict lockdown policies to smarter and more sustainable ones. In accordance with COVID-19 SOPs, large-scale industries and businesses are free to operate again. PKR 25.58 was added to the petrol price in Pakistan by the end of June 2020, bringing its cost to PKR 100.10 liter.

The consequences are similar for other countries as well. Petroleum prices are likely to increase further in the coming months as demand for fuel is again on the rise. Petrol price in Pakistan for October 2021 is PKR 137.79, as shown in the table above.