From October 15, petrol in Pakistan costs Rs393.86 a litre, up Rs1.20, while high-speed diesel fell by 17 paisa to Rs396.65, Pakistan Observer reported citing OGRA. The regulator attributed the petrol increase mainly to a sharp rise in the import premium alongside benchmark Platts prices.
Why prices are so high
Crude oil
Brent crude, the global benchmark, settled at $116.72 a barrel on October 23, its highest level in five months, as the Strait of Hormuz standoff continued. Before the war, about a fifth of the world’s petroleum moved through the strait.
Premiums and freight
Pakistan imports refined petrol and diesel as well as crude. With shipping routes disrupted and insurance costs up, the premium paid over benchmark prices has risen sharply.
Exchange rate and levies
Fuel is bought in dollars, so any weakness in the rupee raises prices. Government taxes and the petroleum levy also make up a large share of the final pump price.
The subsidy debate
In its October staff-level agreement, the IMF asked Pakistan to phase out its fuel support scheme promptly. It said any future relief should be limited, time-bound and targeted through existing social assistance programmes such as BISP, rather than blanket price cuts. Read our IMF explainer and our editorial.
Ways to cut your fuel bill
- Keep tyres at the right pressure, which can save a noticeable amount of fuel.
- Avoid hard acceleration and long idling.
- Combine errands and use public transport where possible. Karachi’s Red Line BRT and the Metro services in Lahore and Islamabad are cheaper than driving.
More in our Energy section.
Sources are linked throughout this article. AajMirror verifies figures against the original reports; if you spot an error, see our corrections policy.