Petrol Price in Pakistan Over the Years (1947–2026): Full Historical Journey

Petrol, also known as motor spirit, has played a central role in Pakistan’s economic growth since independence in 1947. From a time when vehicles were rare and fuel cost only a few paisas per litre to today’s prices crossing hundreds of rupees, the history of petrol prices reflects the broader economic story of the country.

Over nearly eight decades, petrol prices have increased dramatically due to global oil market changes, inflation, currency depreciation, and rising demand. This article provides a complete historical journey of petrol prices in Pakistan from 1947 to 2026.

Petrol Price in 1947 – The Starting Point

When Pakistan became independent in August 1947:

• The economy was mostly agricultural.
• Very few people owned cars or motorcycles.
• Fuel demand was limited.
• Global oil prices were relatively stable.

At that time, the average petrol price was approximately:

Rs. 0.23 per litre

That means petrol cost less than one rupee per litre. For comparison, today’s prices are more than Rs. 250 per litre.

Because vehicle ownership was extremely low, petrol was not a major household expense. Transportation mainly relied on trains, bicycles, animal carts, and limited buses.

1947 to 1970 – Slow and Steady Growth

In the early decades after independence, petrol prices increased gradually. The country was building its infrastructure, roads, and transport system, but overall demand was still moderate.

The increase during this period was slow because:

• Global oil markets were stable.
• Pakistan’s industrial activity was limited.
• Vehicle numbers were relatively low.

Petrol remained affordable for those who owned vehicles.

1970s to 1990s – Oil Crises and Sharp Increases

The 1970s marked a major turning point in global oil pricing. International oil crises caused crude oil prices to surge. Since Pakistan imports most of its petroleum, these global shocks directly affected domestic fuel prices.

By the 1990s, petrol prices had crossed Rs. 10 per litre for the first time. This was a significant jump compared to earlier decades.

During this period:

• Urbanization increased.
• Vehicle ownership grew rapidly.
• Industrial and economic expansion raised fuel demand.

The combination of rising global oil prices and domestic growth led to sustained increases.

2000s – Rapid Acceleration

The early 2000s brought even sharper increases. Global crude oil prices surged due to geopolitical tensions, rising demand from emerging economies, and market speculation.

For the first time in history, petrol crossed Rs. 100 per litre in the early 2010s.

This had a major impact on:

• Transportation costs
• Public bus fares
• Household budgets
• Inflation levels

Fuel was no longer a small expense—it became a major economic concern for citizens.

2010s – Fluctuations but Continued High Prices

During the mid-2010s, petrol prices experienced fluctuations due to changes in global oil supply and demand.

Although prices temporarily decreased in 2015 due to falling global oil prices, they remained much higher than previous decades.

This period showed how strongly Pakistan’s fuel prices depend on international markets.

2020s – Record Highs and Extreme Volatility

The 2020s brought unprecedented volatility. Global disruptions, economic crises, and currency depreciation pushed prices to record highs.

In 2023, petrol crossed Rs. 300 per litre for the first time in Pakistan’s history.

Major reasons included:

• Global energy supply disruptions
• International geopolitical tensions
• Weak Pakistani Rupee
• High government taxes and petroleum levies

Fuel prices are regularly revised by the Oil and Gas Regulatory Authority (OGRA), usually every two weeks, depending on international oil prices and exchange rate changes

Petrol Price in 2026 – Current Situation

Entering 2026, petrol prices remain around:

Rs. 255+ per litre (subject to periodic adjustments)

Although prices are lower than the 2023 record high, they are still historically very high compared to earlier decades.

Key Reasons Behind the Massive Increase

Several long-term factors explain the dramatic rise from Rs. 0.23 in 1947 to over Rs. 250 today.

1️⃣ Global Oil Prices

International crude oil prices fluctuate due to:

• Wars and geopolitical tensions
• OPEC production decisions
• Supply shortages
• Rising global demand
• Since Pakistan imports oil, global price changes directly impact domestic prices.

2️⃣ Currency Devaluation

Oil is traded internationally in US dollars. When the Pakistani Rupee weakens against the dollar, imported fuel becomes more expensive.

Rupee depreciation has significantly increased petrol costs over the years.

3️⃣ Government Taxes and Levies

Petrol prices in Pakistan include:

• Petroleum levy
• Sales tax
• Distribution margins

These taxes form a large portion of the final retail price.

4️⃣ Rising Domestic Demand

Pakistan’s population has grown significantly since 1947. Urbanization and rising vehicle ownership have increased fuel consumption nationwide.

More demand naturally leads to higher import bills and pricing pressure.

Impact on Daily Life

The rise in petrol prices affects almost every sector:

• Public transport fares increase
• Ride-hailing service costs rise
• Goods become more expensive due to higher transportation costs
• Overall inflation increases

Fuel prices directly influence the cost of living for ordinary citizens.

Final Comparison

• 1947: Rs. 0.23 per litre
• Mid-2020s: Around Rs. 255+ per litre

This represents more than a thousand-fold increase in nearly 80 years.

Conclusion

The journey of petrol prices in Pakistan mirrors the country’s economic evolution. From a newly independent nation with limited fuel demand to a growing economy heavily dependent on imported energy, price changes have been shaped by global markets, inflation, taxation, and currency fluctuations.