Petrol Prices in Pakistan – JANUARY 2025 Update

Petrol Prices in Pakistan – JANUARY 2025 Update, As the year draws to a close, Pakistan sees yet another shift in petroleum prices, reflecting both global trends and domestic economic conditions. The Oil and Gas Regulatory Authority (OGRA) continues its practice of revising fuel prices twice a month to ensure alignment with international market rates and local economic factors.

Latest Petroleum Prices (as of December 31, 2024):

Understanding Petroleum in Pakistan

Petroleum, or crude oil, is a fossil fuel derived from organic matter that undergoes refinement to produce various fuel types. Each type serves different functions, from powering household appliances to fueling vehicles and machinery.

Common Types of Petroleum in Pakistan:

• Petrol (Super) – High-octane fuel for cars and bikes.
• High-Speed Diesel (HSD) – Used in heavy-duty commercial vehicles.
• Light Diesel Oil (LDO) – Powers medium-sized machinery and vehicles.
• Kerosene – Utilized in industrial applications and households.
• Liquified Petroleum Gas (LPG) – A vehicle and household fuel.
• Compressed Natural Gas (CNG) – A cleaner alternative to diesel and petrol.

Detailed Price Breakdown:

1. Petrol (Super) Price
Petrol, commonly known as super, is essential for personal vehicles. As of December 31, 2024, the price of petrol in Pakistan is PKR 252.66 per liter.

2. High-Speed Diesel (HSD) Price
Diesel fuels large commercial vehicles, buses, and trucks. The latest price of high-speed diesel is PKR 258.34 per liter, reflecting a PKR 2.96 increase.

3. Light Diesel Oil (LDO) Price
Light diesel powers medium-scale vehicles and machinery. LDO’s price has decreased to PKR 148.95 per liter, with a PKR 2.78 reduction.

4. Kerosene Oil Price
Kerosene is vital for powering smaller machines and household equipment. Its price has dropped by PKR 3.32, bringing the current rate to PKR 161.66 per liter.

LPG and CNG Prices

• LPG Price (as of December 1, 2023): PKR 254.86 per kg
• CNG Price: Varies based on the region but remains cheaper than traditional fuels.

Historical Petrol Prices in Pakistan (2024):

Factors Affecting Petrol Prices in Pakistan:

1. International Crude Oil Prices
   Global oil prices directly impact domestic fuel rates. Any increase in crude oil prices reflects in the local market.
2. Exchange Rates
   A devaluation of the Pakistani Rupee against the US dollar leads to higher petroleum prices due to increased import costs.
3. Taxes and Government Levies
   Petroleum tax is a significant revenue stream for the government, but high taxes contribute to rising fuel prices.
4. Refining and Distribution Costs
   Refining crude oil and distributing it across the country adds to the overall cost. Transportation costs further elevate petrol prices, particularly for remote areas.

Historical Context and Economic Impact

Since the 1990s, Pakistan’s reliance on fuel has grown significantly. The introduction of CNG as an alternative fuel provided temporary relief, but global oil price volatility continues to influence the market.

In 2023, Pakistan experienced its highest petrol price, reaching PKR 331.38 per liter in September. Government interventions, including tax reductions and subsidies, have provided short-term relief but cannot mitigate global market trends entirely.

Adoption of Euro Emission Standards

Pakistan adopted Euro V emission standards in 2020 to enhance vehicle performance and reduce environmental pollution. This transition aligns with international efforts to curb emissions and promote greener fuels.

Can Petrol Prices Be Controlled?

While complete control over petrol prices is challenging, the government can provide subsidies, adjust taxes, and manage petroleum reserves to ease the burden on consumers. Collaborations with the Organization of Petroleum Exporting Countries (OPEC) can also help stabilize the market.

Economic Impact of Rising Petrol Prices

• Inflation: Higher fuel prices increase transportation costs, leading to inflation.
• Consumer Spending: Rising petrol prices reduce disposable income, affecting overall spending.
• Business Costs: Businesses relying on transportation face increased operational costs, resulting in higher product prices.
• Trade Balance: Expensive fuel imports widen trade deficits, impacting national debt and exchange rates.

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Conclusion
Petrol Prices in Pakistan – JANUARY 2025 Update, Petroleum prices in Pakistan continue to fluctuate, driven by global trends and domestic economic conditions. With ongoing efforts to adopt cleaner fuels and stabilize the market, the government aims to balance economic growth with consumer affordability. Petrol Prices in Pakistan – JANUARY 2025 Update.