Why petrol prices in Pakistan are higher than neighboring countries

Petrol prices in Pakistan have reached around 410 rupees per litre, showing a sharp increase of about 56% since tensions began between Iran and the United States. This rise has raised an important question among the public: is fuel this expensive worldwide? The answer, according to available data, is no.

Comparison with Other Countries
In the region, petrol prices are much lower. In India, petrol is around 98 Indian rupees per litre and has increased by only about 3 rupees over the past four years. In Bangladesh, the price is around 120 taka with a total increase of only 15%. Sri Lanka, which recently faced a severe economic crisis, has seen a 42% increase—still lower than Pakistan. Afghanistan and the Maldives also show much smaller increases compared to Pakistan.

These figures raise a clear question: if all these countries are buying fuel from the same global market, why are prices so high in Pakistan?

Main Reason: Taxes and Levies
The answer largely lies in taxes and levies. While global oil prices are the same for all countries, the final price depends heavily on government taxation. In Pakistan, under IMF conditions, the petroleum levy has reportedly been increased from 80 rupees to 160 rupees per litre. This means a large portion of what consumers pay is due to government-imposed charges, not global oil prices.

In contrast, countries like India manage prices through subsidies and strong refinery systems, while Bangladesh and Sri Lanka have tried to limit the burden on the public through policy adjustments.

Public Concern
High fuel prices do not only affect transport costs but also increase the prices of food, goods, and essential services. For ordinary citizens, the key question remains the same: will fuel ever become affordable again, or will high taxes and levies continue to keep prices under pressure?