Fuel prices in Pakistan have been a major concern for its citizens for a long time. The prices of petroleum products, including petrol, diesel, and liquefied petroleum gas (LPG), are determined by the government, which sets a price based on the global market prices of crude oil and other factors.



The prices of petroleum products in Pakistan have seen a lot of fluctuations in recent years. For example, in July 2019, the government increased the price of petrol by Rs. 5.15 per liter, which was followed by another increase of Rs. 2.47 per liter in August 2019. However, in November 2019, the government reduced the price of petrol by Rs. 2.40 per liter.


The COVID-19 pandemic has also had a significant impact on fuel prices in Pakistan. In April 2020, the government reduced the price of petrol by Rs. 15 per liter, while the price of diesel was reduced by Rs. 12.83 per liter. This reduction was made to ease the burden on citizens during the lockdown.


The fuel prices in Pakistan are heavily influenced by global market prices of crude oil. When crude oil prices increase globally, it also leads to an increase in the prices of petroleum products in Pakistan. The opposite is also true. When global crude oil prices decrease, it leads to a decrease in the prices of petroleum products in Pakistan.


In addition to global market prices, there are other factors that affect fuel prices in Pakistan. For example, taxes and duties imposed by the government also play a major role in determining the prices of petroleum products.


Moreover, the exchange rate between the US dollar and the Pakistani rupee also has a significant impact on fuel prices in Pakistan. When the Pakistani rupee depreciates against the US dollar, the prices of petroleum products increase in Pakistan. Conversely, when the Pakistani rupee appreciates against the US dollar, the prices of petroleum products decrease in Pakistan.


In conclusion, fuel prices in Pakistan are subject to various factors including global market prices, taxes and duties imposed by the government, and exchange rates. As such, the prices of petroleum products are often volatile and subject to frequent fluctuations.