Petroleum prices in a particular country or region are affected by a lot of factors. The cost of crude oil (the natural source of all petroleum by-products), refining, distribution and marketing costs, profits, and fuel taxes are some of the noteworthy factors.
Depending on the financial capacities of their respective economies, governments, especially in developing countries like ours, also subsidize fuel prices to ease up the financial burden on the general public.
In Pakistan, the federal government grants millions of rupees as subsidies to maintain fuel prices and provide relief to the common man. However, the country still lacks a consistent policy for the provision of fuel subsidies.
Asian countries like China, India, Bangladesh, Indonesia, and Malaysia have proper subsidy tools and management systems. Some of these countries even include fuel subsidies in their annual financial budgets, which our country should also do.
Petroleum Prices in Pakistan Are the Lowest in the Region!
However, when it comes to petroleum prices, Pakistan takes the lead among many countries in Asia. According to a recent report by Radio Pakistan, our country has the lowest petroleum prices in the region. Fuels prices in India, Sri Lanka, Bangladesh, and Nepal are comparatively higher.
The Latest Petrol Price in Pakistan for June 2021
Now, let’s take a look at the latest fuel prices in Pakistan. The chart below shows you the updated prices of the most frequently used petroleum by-products including petrol, diesel, light diesel, and kerosene oil.
|Fuel Type||Fuel Price For June 2021||Fluctuations||Fuel Price For May 2021|
|Petrol||PKR 110.69||increased by PKR 2.13||PKR 108.56|
|Diesel||PKR 112.55||increased by PKR 1.79||PKR 110.76|
|Light Diesel||PKR 77.65||increased by PKR 2.03||PKR 77.65|
|Kerosene Oil||PKR 81.89||increased by PKR 1.89||PKR 80|
The Latest CNG Price in Pakistan for June 2021
Compressed Natural Gas (CNG) is another highly popular fuel that powers vehicles in our country. Pakistan has been divided into two regions for CNG supply: Region I (Khyber Pakhtunkhwa, Balochistan, Potohar region including Islamabad, Rawalpindi, and Gujar Khan) and Region II (Sindh and lowlands of Punjab).
Prices of natural gas fuel may vary from region to region. For your reference, the latest CNG rates in Pakistan in both of these regions have been shared below. Take a look!
- CNG Price in Pakistan for June 2021 (Region I): PKR 81.8 per KG
- CNG Price in Pakistan for June 2021 (Region II): PKR 81.8 per KG
A Quick History of Petrol Prices in Pakistan
The coronavirus pandemic had a very negative impact on the global petroleum industry. The demand for fuel all over the world dropped significantly and left the oil and gas industry oversupplied. Fuel consumption in Pakistan also declined by 11% during the June-July fiscal year 2019-2020 as strict lockdowns were imposed and the fear of catching COVID-19 kept most of the people indoors.
Different types of work-from-home policies were announced by the corporate sector. Petroleum products in Pakistan were down to the lowest prices of the last 10 to 12 years. In June 2020, the price of petrol in the country reached a record low of PKR 74.52 per litre. Also, due to strict lockdown measures, some regions of the country also started reporting fuel crises.
Fortunately, these crises were short-lived. In the latter half of 2020, the number of coronavirus cases went down and the government shifted its focus from strict lockdowns measures to smart and more sustainable lockdown policies. Observing COVID-19 SOPs, large-scale industries and business enterprises were allowed to resume their operations. And by the end of June 2020, the petrol price in Pakistan increased by PKR 25.58, which took its cost up to PKR 100.10 litre.
Consequences are more or less the same for other countries as well. Since the demand for fuel is again on the rise, petroleum prices are expected to go further up in the coming months. As mentioned in the table above, the petrol price in Pakistan for June 2021 is PKR 110.69. The updated fuel price is effective from June 16, 2021. Keep checking back for the latest developments.
Now, you may be wondering which authority is responsible for regulating the oil and gas sector in Pakistan and suggesting the prices of petroleum products? Well, the next section of our blog has the answer you’re looking for.
Which Authority Regulates the Oil and Gas Sector in Pakistan?
Founded in 2002 by the Government of Pakistan, the Oil and Gas Regulatory Authority (OGRA) is responsible for regulating the fuel sector in the country. Based on the demand and supply and usage of many other key resources, OGRA makes a comprehensive summary to suggest changes in the fuel prices in Pakistan.
This summary can only be implemented if approved by the Prime Minister of Pakistan otherwise it is rejected and the prices remain unchanged. Negotiations between the government and OGRA are also a very important part of the process of finalizing prices.
Now that we have discussed all the key information about the petrol prices in Pakistan and the key factors that cause them to fluctuate after every month or two, it’s time for us to wrap up. If you have any questions or feedback related to our blog, drop us an email at email@example.com.
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