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?
Petrol is 5000 Dong/ litre in Vietnam. This amounts to Rs. 21.25 / litre (Approx.)
So far as I know, petrol prices in Pakistan are not subsidized. When the government occasionally talks of ‘subsidy’ they really mean they have reduced the taxes on it. 17% sales tax is applicable at all times, but the Petroleum Development Levy, of around Rs. 10 per litre has been reduced to zero at times in the last few months.
The only time that petrol prices were truly subsidized was in 2007 when world oil prices were at a peak, but the Musharraf government did not raise petrol prices because of the impending election.
first off, not to be too picky, but real terms and cost of living are the same thing. I think you mean nominal vs cost of living (real) terms.
Nominal terms, it is clearly at best equal (though mostly cheaper), a gallon (approx 4 litres) in the US is anywhere between $3.50 and $4.60 depending on state taxes. This is a near 1-1 ration. In cost of living terms, it is more expensive. Taking Tucson, Az as an example, with the cheapest rate, a litre is less than a single dollar, which will not even get you a roll of mentos or lifesavers (polo- the mint with a hole :) ). Rs. 80 on the other hand, is a comparatively a much larger amount.
In Qatar it is Qatari Riyal 1.00 per liter i.e. Rs. 23.5. I think it is even cheaper in Saudi Arabia. However, comparing petroelum prices between Pakistan and petroleum producing countries is unfair. I think we should compare with countries of same region and similar economic situation like Bangladesh, Sri Lanka, India (to some extent) etc.
Here in France gasoline is 1.5Euros / litre, which if converted to PKR is roughly 180. but I know my office cleaner earns total 1200euros a month, has three school going children, one big car for his annual tours across europe and one small car for him to come to office and he is living easily with own house, health care facilities and quality education and no daily commodity price hikes. Meaning people have the power of purchasing here, so much difference here and in our Pakistan.