Petrol Prices in Pakistan (1947–2026): A Detailed Historical Overview
Petrol, commonly known as motor spirit, has been one of the most important fuels in Pakistan since independence. Over the past eight decades, its price has changed dramatically. What once cost only a few paisas per litre has now crossed more than Rs. 250 per litre.
The story of petrol prices is closely linked to Pakistan’s economic development, global oil markets, inflation, currency depreciation, and rising population. This article presents a clear and updated historical journey of petrol prices in Pakistan from 1947 to 2026.
1947: The Early Days After Independence
When Pakistan became independent in August 1947:
- The economy was largely agriculture-based.
- Industrial activity was limited.
- Very few citizens owned cars or motorcycles.
- Public transport mainly included trains, buses, bicycles, and animal carts.
At that time:
- Petrol price in 1947: Approximately Rs. 0.23 per litre
Fuel demand was extremely low because vehicle ownership was rare. Petrol was not a major household expense.
1947–1970: Gradual and Controlled Growth
In the first two decades after independence, petrol prices increased slowly. Global oil markets were relatively stable, and Pakistan’s fuel demand was still moderate.
Approximate Petrol Prices (PKR per litre)
| Year | Price (PKR/Litre) |
|---|---|
| 1947 | 0.23 |
| 1950 | 0.25 |
| 1960 | 0.36 |
| 1965 | 0.40 |
| 1970 | 0.48 |
Why Prices Remained Stable
- Limited industrial growth
- Low vehicle ownership
- Stable international oil rates
- Controlled economic expansion
During this time, petrol remained affordable for most vehicle owners.
1970s–1990s: Oil Crises and Major Increases
The 1970s marked a turning point in global energy markets. International oil crises caused crude oil prices to rise sharply. Since Pakistan imports most of its petroleum, domestic prices were directly affected.
Approximate Prices During This Period
| Year | Price (PKR/Litre) |
|---|---|
| 1975 | 1.20 |
| 1980 | 2.50 |
| 1985 | 3.00 |
| 1990 | 6.00 |
| 1995 | 11.00 |
By the 1990s, petrol had crossed Rs. 10 per litre for the first time in Pakistan’s history.
Key Developments
- Rapid urbanization
- Growth in private vehicle ownership
- Expansion of road infrastructure
- Increasing industrial activity
Fuel was becoming a more noticeable part of household expenses.
2000–2013: Sharp Acceleration
The early 2000s brought much steeper increases. Rising global demand, geopolitical tensions, and market speculation pushed international oil prices higher.
Petrol Prices in the 2000s
| Year | Approx. Price (PKR/Litre) |
|---|---|
| 2000 | ~30 |
| 2005 | ~55 |
| 2007 | ~60 |
| 2010 | ~73 |
| 2012 | ~108 |
| 2013 | ~110 |
For the first time, petrol crossed Rs. 100 per litre in the early 2010s.
Economic Impact
- Higher transport fares
- Increased delivery and logistics costs
- Rising inflation
- Pressure on household budgets
Fuel had now become a central economic issue for citizens.
2014–2019: Fluctuations but High Levels
During the mid-2010s, global oil supply changes led to temporary price reductions.
Approximate Prices
| Year | Price (PKR/Litre) |
|---|---|
| 2014 | ~94.50 |
| 2015 | ~80 |
| 2018 | ~80.70 |
| 2019 | ~90 |
Although prices dropped slightly in 2015 due to falling global oil rates, they never returned to earlier low levels.
This period highlighted Pakistan’s dependence on international oil markets.
2020–2026: Record Highs and Extreme Volatility
The 2020s have been one of the most unstable periods for petrol prices.
Approximate Prices
| Year | Price (PKR/Litre) |
|---|---|
| 2020 | ~100 |
| 2022 | ~200 |
| 2023 | ~331.38 (record high) |
| 2024 | ~249.10 |
| 2025 | ~255.86 |
| 2026 | ~255+ |
In 2023, petrol crossed Rs. 300 per litre for the first time in history.
Role of OGRA in Price Determination
Petrol prices in Pakistan are revised regularly by the Oil and Gas Regulatory Authority.
Price adjustments usually occur every two weeks and depend on:
- International crude oil prices
- Exchange rate fluctuations
- Government taxes and levies
Main Reasons Behind the Massive Increase
The rise from Rs. 0.23 in 1947 to over Rs. 250 in 2026 can be explained by several long-term factors.
1. Global Oil Market Changes
International oil prices fluctuate due to:
- Wars and geopolitical tensions
- Production decisions by oil-exporting countries
- Supply shortages
- Rising global demand
Because Pakistan imports oil, global price changes directly affect domestic rates.
2. Currency Depreciation
Oil is traded globally in US dollars. When the Pakistani Rupee weakens against the dollar:
- Import costs increase
- Local petrol prices rise
Rupee depreciation has significantly raised fuel prices over the years.
3. Government Taxes and Levies
The final petrol price includes:
- Petroleum levy
- Sales tax
- Distribution margins
Taxes form a significant portion of the retail price.
4. Rising Domestic Demand
Since 1947:
- Pakistan’s population has grown rapidly
- Urbanization has increased
- Vehicle ownership has expanded dramatically
More vehicles mean higher fuel consumption and greater import bills.
Impact on Daily Life
Rising petrol prices influence nearly every part of the economy.
Direct Effects
- Increased public transport fares
- Higher ride-hailing service charges
- Rising delivery costs
Indirect Effects
- Higher food prices
- Increased manufacturing costs
- Overall inflation
Fuel prices play a major role in determining the cost of living.
Long-Term Comparison
- 1947: Rs. 0.23 per litre
- Mid-2020s: Around Rs. 255+ per litre
This represents more than a thousand-fold increase over nearly 80 years.
However, it is important to remember that inflation and currency devaluation also reduced the value of money during this time.
Final Analysis
The journey of petrol prices in Pakistan reflects the country’s broader economic transformation. From a newly independent nation with limited transportation needs to a developing country heavily dependent on imported energy, fuel pricing has been shaped by global oil trends, inflation, currency changes, and taxation policies.
While petrol once cost only a few paisas per litre, it is now one of the most significant expenses for households and businesses. The history of petrol prices is not just about fuel—it tells the story of Pakistan’s economic growth, challenges, and dependence on global energy markets.
