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Pakistan petrol patrol

Posted on July 5, 2006
Filed Under >Adil Najam, Economy & Development, Pakistanis Abroad
Total Views: 13335


Adil Najam

As oil prices have skyrocketed, people around the world–industrialized and developing countries alike–have begun to be very careful about what price they pay for petrol (‘gasoline’ in the US) at the pump.High prices effect everyone everywhere, but not equally. Petroleum pricing can have particularly regressive impacts because poorer people tend to spend much more of their disposable income on energy but also because buying power tends to be much less in developing countries. A litre (or gallon) of petrol, therefore, is worth a much greater proportion of the average person’s income in Pakistan than in, say, the United States.

According to The News (1 July, 2006), one litre of ‘motor spirit’ will cost Rs. 57.70 in July. That means:

1 Litre of Petrol in Pakistan (Rs. 57.70)
3.52 UAE Dirham / 0.95 US Dollars / 1.30 Australian Dollars
0.52 UK Pounds / 0.75 Euros / 3.59 Saudi Riyal

1 Gallol of Petrol in Pakistan (Rs. 218.42)
13.31 UAE Dirham / 3.62 US Dollars / 4.88 Australian Dollars
1.96 UK Pounds / 2.84 Euros / 13.59 Saudi Riyal

So, if you are a Pakistani living abroad, think of what petrol costs in your neighborhood and then consider what it ‘really’ costs someone in Pakistan–not as a direct conversion, but as a proportion of income. It will be a sobering exercise.

13 comments posted

Comment Pages: [2] 1 » Show All

  1. Ayub says:
    November 3rd, 2010 4:31 pm

    petrol now Rs. 72/litre, its all about IMF policies implementation and an extra tax on General public

  2. Waqas says:
    January 10th, 2007 9:44 am

    hey raza… i saw you mentioned biodiesel being produced as cheap as 30 rs/ltr. could you elaborate on how you got to that figure. recently i have been studying biodiesel and been considering its use in Pakistan where diesel right now stands almost 38 rs/ltr at the petrol pump. Not only will this save our foreign exhchange but also give the jobs to the 65% of Pakistani population in the rural areas.

  3. December 31st, 2006 2:39 am

    [...] One of the great untold stories of 2006 may have been how economic existence for poor and middle class Pakistanis continued to become harder (here, here and here) even as a number of macroeconomic indicators seemed to do well. Some would say that eventually the benefits of macroeconomic growth will trickle down. But eventually can come too late for some. [...]

  4. Debby_JJ says:
    August 8th, 2006 9:28 am

    price comparison is very interesting
    shoudl have, but did not realize how gas is so much more expensive in developing countries
    people who can afford the least pay the most
    and things will only get worse in future i fear

  5. Raza Haider says:
    August 3rd, 2006 10:02 am

    Pakistan has no choice but to increase consumption of energy in an efficient manner if exonomic development is to occur.

    With the price of petrol and diesel being what it is in Pakistan, the country is ideally suited for advancing biodiesel technology. The basic raw material of biodiesel, cotton seed oil, is widely available in Pakistan and the stuff can be produced for under Rs. 30 / litre. This would allow an alternative energy choice for the consumer and boost industrial production as factories could use this for diesel generators and turbines.

    However, the government should provide some incentives for investment in this sector, just like governments everywhere else are.

Comment Pages: [2] 1 » Show All

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