Petrol, also known as gasoline, is extracted from crude oil in complex steps. It originates from the gradual decomposition of organic matter under heat and pressure and forms a thick black liquid, which is known as crude oil. It is commonly used in cars, bikes, engines, and other vehicles.
Types of Fuels and Their Unique Roles
Though petrol is widely used form of crude oil, there are other types of fuels that serve diverse purposes across different sectors. Each type of fuel comes with its characteristics, cost, and applications.
Petrol Price in Pakistan
Petrol (Super) is the fuel most cars and bikes in Pakistan run on. The current petrol price in Pakistan is PKR 330/Litre.
High-Speed Diesel Price in Pakistan
High-speed diesel is used in trucks, buses and diesel cars. The current HSD price in Pakistan is PKR 360/Litre.
Light Diesel Oil Price in Pakistan
Light diesel oil (LDO) is used in slower industrial engines, boilers and furnaces. The current LDO price in Pakistan is PKR 231.72/Litre.
Kerosene Oil Price in Pakistan
Kerosene is used for heating, lighting and some small machines. The current kerosene oil price in Pakistan is PKR 283.64/Litre.
LPG Price in Pakistan
LPG is used as auto-gas and for household cooking. The current LPG price in Pakistan is PKR 294.08/kg. Hi-octane petrol is not set by OGRA; see today’s hi-octane price in Pakistan by city. For the cars that use the least fuel, see the best fuel average cars, and for a motorway drive, the motorway toll tax.
Effects of fuel prices on Pakistan’s Economy
Fluctuations in fuel prices, especially petrol prices in Pakistan, can have a severe effect on the economy. Here is how it can have a serious impact on the economy.
Transportation Costs
Transportation cost heavily depends on the fuel price for any country. It has direct impact on the public transport, private drivers, and local consumers. And this increase in the petrol price is directly passed on the the consumer in the form of higher travel fares or increased product costs.
Inflation
Fuel prices and inflation are closely related to each other. Increase in the petrol prices also increases the production cost of products which in turn tends to increase the prices of the products. This can have a direct impact on low income household, who spend most of their income on necessities like food and transportation.
Daily Life and Household Budgets
The petrol price in Pakistan also hits household budgets. Higher fuel costs mean more spent on transport and on goods that have to be moved by road, leaving less for savings and daily needs.
Impact on industries and economy
Industries that depend heavily on transportation, such as agriculture and the chemicals industry, face higher production costs due to increased petrol prices. This results in higher inflation and slow economic growth. This can result in decreased profitability or increased product prices.