The price of petrol in Pakistan may rise to PKR 275 per litre due to the rupee’s decline and the potential implementation of a sales tax on petroleum products, according to Fahad Rauf, Head of Equity Research at Ismail Iqbal Securities. High-speed diesel is currently priced at Rs 260.95 per litre, while MS Petrol is priced at Rs 256.13 per litre.
Pakistan’s current petrol price as of March 2025 Pakistan’s most recent petroleum prices
Equity Research at Ismail Iqbal Securities has analyzed the potential impact of the exchange rate and sales tax on petroleum prices in Pakistan. Despite expectations of the government raising prices due to IMF demands, they have decided to keep them unchanged for the past two fortnights.
The new coalition government led by PML-N has raised prices since the removal of former Prime Minister Imran Khan on April 10, 2022. The current government estimates collecting Rs855 billion as petroleum levy during the 2023/2025 fiscal year. The price of petrol in Pakistan may increase per litre due to the decline in the rupee value and the potential implementation of a sales tax on petroleum products.
Pakistan’s petrol price as of March 19, 2025
Petrol Price Comparison
• Petrol: 252.10 (Rs. 256.13)
• High-Speed Diesel: 255.38 (Rs. 260.95)
• Kerosene Oil: 164.07 (Rs. 188.83)
• Light Diesel: 147.68 (Rs. 165.75)
Fuel composition
Petrol, a key component of oil, is primarily composed of hydrocarbons, including aliphatic compounds like hexane and heptane, and aromatic compounds like benzene, toluene, and xylene, with small amounts of sulfur and other impurities, influenced by the crude oil source and refining process.
Petrol Properties
Petrol, a clear, yellowish liquid with a strong, pungent odor and high flammability, is easy to pump and transport due to its high energy density and low viscosity. However, its low flash point makes it a potentially dangerous fuel if not handled properly.
Pakistani petrol prices
Pakistan’s petrol prices are subject to fluctuations due to factors such as crude oil prices, taxes, and exchange rates. The government sets the retail price of petrol, which is sold through state-owned oil marketing companies. The government also imposes taxes on petrol, which can increase the cost for consumers.
The price of petrol in Pakistan is relatively low compared to other countries, but it can still be a significant cost for many people, particularly those on low incomes. The increase in petrol prices also significantly impacts the cost of living and the economy. The government often adjusts the prices of petrol on a monthly basis in line with global crude oil price fluctuations.
Conclusion
Pakistan’s petrol prices are influenced by global crude oil rates, exchange rates, and government taxation policies. Despite IMF pressure, the government has kept prices unchanged for two fortnights. However, potential increases due to rupee depreciation and potential sales tax could impact inflation and the cost of living. As fuel prices fluctuate, citizens and businesses must prepare for potential financial adjustments in the coming months. Read More