Today's Petrol Price in Pakistan 2023.

With the dollar rate in Pakistan increasing daily, the petrol rate in Pakistan has also increased. If you use any sort of automobile for transportation, you must be worried about the fluctuation in petrol prices. This blog will tell you about the petrol price in Pakistan today, the trends in rates, and the reasons for fluctuation.

Latest Petrol Rate in Pakistan

The government of Pakistan usually increases or decreases the petrol rates on the 1st and 16th of every month. As of today, the petrol price in Pakistan is Rs 290.45 per litre. Before that hike, the petrol rate in Pakistan was Rs 272.95 per litre but it has hiked to a 6% price increase.

Let us explore some of the changes in the petrol prices in each month of 2023.

Current Prices of All Fuels Across Pakistan

Are you looking for today's petrol price in Pakistan 2023? This blog will provide you with the current prices of all types of fuels in the following table:

Petrol Rate in Pakistan Over the years

With that, let us view petrol rates in Pakistan over the years. Starting from 1^st January of each year.

Petrol Prices Across Asia

Because of increasing inflation, the current dollar rate in Pakistan is Rs 300.33. If we consider that, the petrol price in Pakistan today is 0.97 USD.

Now, let us compare petrol prices across five countries of Asia and evaluate the price in USD.

Reason for Hike in Petrol Price in Pakistan Today

Today petrol price in Pakistan 2023 has nearly reached Rs300. Are you also worried and tensed on this much hiked of the petrol prices? For your guidance, we have listed some of the reasons that contribute to this increase in petrol price in Pakistan.

•  Global Crude Oil Prices

The most important factor that contributes to this petrol price in Pakistan today is the international oil prices. Like many other countries, Pakistan also imports a significant portion of its crude oil. The instability in global oil prices directly impacts the cost of importing and refining crude oil. Because the global crude oil prices have increased, the today petrol price in Pakistan 2023 is also high.

• Exchange Rate Fluctuations

Another fundamental reason that contributes to the hiked petrol rate in Pakistan is the exchange rate.  Since crude oil is traded in USD, any depreciation of the PKR against the USD can lead to higher costs for oil imports.

The dollar exchange rate in 2018 was 121.574 PKR. Similarly, the petrol price in 2018 was also low as compared to today. Let us understand this relation with a graph.

• The bar shows the petrol prices each year.
• The line shows the dollar exchange rate.

• Government Taxes

Different taxes such as the General Sales Tax (GST) and the petroleum levy are applied to petrol to generate revenue for the government. In Pakistan, with an increase in GST, the petrol rate in Pakistan is also increased.

•  Supply and Demand Dynamics

The increase in the number of vehicles in Pakistan has enhanced the demand for petrol. But, the supply of petrol to Pakistan has not increased in the same way. With that difference, the petrol price in Pakistan today is high.

•  Distribution Costs

Pakistan imports fuel from different countries which contributes to distribution costs as well. Furthermore, the process of refining crude oil, then transferring it to local pumps, and storage of fuel also affects today's petrol price in Pakistan 2023.

• Inflation

Pakistan is experiencing severe inflation and economic crisis. With changing governments in Pakistan, the policies are continuously updating which affects the economy badly.  In such an environment, the cost of production, transportation, and distribution can rise, which contributes to an increase in the rate of petrol in Pakistan.

• Global Economic Conditions

Most of the time, the global economic conditions are directly related to the petrol price in Pakistan. Global economic conditions can impact oil demand and supply. During periods of economic growth, demand for oil tends to rise, which can lead to an increase in crude oil prices. Conversely, economic slowdowns can result in decreased demand and lower oil prices.

Conclusion

In conclusion, the surge in petrol price in Pakistan today can be problematic. Multiple factors contribute to today's petrol price in Pakistan 2023. Firstly, the global crude oil prices have significantly affected the price. Additionally, instability in the exchange rate also impacts the petrol rate in Pakistan. Domestically, government taxation policies and supply-demand dynamics further contribute to the volatility of petrol rates. Ultimately, understanding these factors is vital for individuals and policymakers to navigate the problems and offer ease to the people.