I saw this picture and wondered how petrol prices in Pakistan compare to what they are in rest of the world.
As I searched for an answer I realized that (a) ATP had done a post on the same question back in 2006 and (b) it was not very easy to find information on how petrol prices in different parts of the world compare.
So, I thought maybe I should ask readers what the prices of petrol are where they are. Are we in Pakistan paying too much, or too little, for petrol – in real terms and also in comparative cost of living terms? Odd as it may seem, while petrol prices are higher, they may still be cheaper in comparison to rise in world prices than many other places. But I need more data on this before I figure that out. Any answers?
11-06-2011
scanning through these views one is reminded how close we have been to each others
lets be good neighbours& be benevolent to the associates
with regards ‘
sham sunder azad
A forum post I recently read said:
If you go to oil-price.net, you will see that the price of crude oil is between $113 and $126 a barrel today (one barrel is about 158 liters, so means $0.78/liter approx). Mouse over the “1y” figure to see the rise. Going up since June last year. If you look at 52 week value in table below chart, you will see that lowest point in past year was $66.
So, crude oil went from low of $66 to $113 now. 100 * (113 – 66) / 66 = 77% in one year.
Now look at local prices. I found this article from June 2010 which says petrol price was lowered to Rs 67.95 in June 2010 (maybe the price was even lower last year but I don’t remember). Today the price is approx Rs 88.41. 100 * (88.41 – 67.95) / 67.95 = 30%
Crude oil: up 77%
Local petrol: up 30% same period.
Going back to crude oil: $0.78/liter (about Rs 65/liter). You cannot put crude oil in your car, you have to process it at refinery. I don’t know how much that costs. Plus you also have to add transportation of crude oil to refinery, distribution of petrol or diesel from refinery to petrol station, etc. We are closer to Middle East than Europe or US so transportation is cheaper, and maybe we get subsidy for oil from Arab governments (but not Saudi I think they stopped when Zardari became President).
And, then there are taxes. We all like to blame government for taxes, but petrol taxes pay for things like road maintenance especially motorways.
You guys were on to something, were you not? About the prices rising again. Happy now. Its getting closer to world prices!
We are an affluent people.Just visit any Petrol or CNG refueling pump and you will understand what I am trying to say. Life is good!!!!