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?
I just browsed the answers to find out that most of the answers are missing the point despite being informative. WSB(?) was one of the few, or may be the only one, who got it right. Apart from the scientific precision, it is fair to see the price in the context of average income. Rs 80 somthing are really not a big deal for someone who even did not finish their high school but was lucky enough to be born at some place(USA, Germany, Switzerland etc.) where they would manage to earn something like 150k or above. So 100 liters of gasoline would cost them just about 5% of his pay. For a Pakistani who even did their graduation and got employed with some good employer would probably get 20k at the most (we are not talking about the exceptions, but the rule) and would have to pay almost 40% of his pay for the fuel. At that rate the price of being born in the wrong country is too high imho….
I think @Husnain is on the right track here.
Assuming Rs. 80 = $1 (USD).
Gas (Petrol) prices are much higher in Pakistan when factor in the Purchase Power Parity (PPP). At about Rs. 80+ per liter it comes to roughly $1 in nominal (?) term per liter. So for an American gallon (3.78 liter) this would be Rs. 302 or $3.775.
But in terms of PPP, I think, $1 has much more buying power in Pakistan. I think an American gallon of gas/petrol costs about $10-12 for Pakistanis.
Am I right?
Here in Oslo, Norway one liter of petrol cost 14 Norwegian kroner. That is the same as 218,4 pakistani rupis.
And diesel is kroner 13,2 per liter. That is 205,92 pakistani rupis.
I guess we have the most heavily taxed fuel in the world.
Even though we have the highest salary in the world, every one is complaining. Maybe it is because Norway is among the largest oil producing countries in the world!
About 75% of the price of petrol comes from the market price of crude oil. That’s Rs. 60 per litre according to current rates. Add 10-15% more for refining and you got Rs. 70 already. Then add for distribution/transportation/profit/taxes and the rates in Pakistan are quite reasonable. The unfortunate thing is that the common man in Pakistan cannot afford reasonable prices for commodities, so the government is expected to borrow and subsidize.
In Bermuda is $2.29 which is around Rs. 194.65, yes thats a a lot