Pakistan Oil Prices, Pakistan Petroleum Prices and current Petrol Prices

Pakistan Petrol price and Petroleum prices. Current Super petrol price in Pakistan is Rs. 97.83 /Ltr, Pakistan, High Speed Diesel is Rs. 112.94 /Ltr and Light Speed Diesel is Rs. 82.44 /Ltr.

Petroleum Rates in Pakistan

Petroleum is basically a liquid that exists naturally below the earth’s surface. The color of petroleum varies giving yellow to blackish tint. The word petroleum comes from the combination of two words ‘petra’ meaning rock and ‘oleum’ meaning oil which gives petroleum its alternative name ‘fossil fuel’. Below the earth’s surface, it is believed to occur in the geological formations. Through the method of drilling, petroleum in raw form is extracted from beneath the earth and the technique of distillation is applied. Distillation separates liquid petroleum from the raw one that is extracted by drilling. Usually dead organisms like algae and zooplankton that are buried deep underneath the earth when subjected to immense heat and pressure form petroleum. Petroleum itself is only composed of crude oil but in raw form it may contain many type of liquid, solid and gaseous hydrocarbons.

Types of Fuels

Multiple types of fuels that are distilled from petroleum are;

• Diesel
• Kerosene
• Jet Fuel
• Gasoline
• Butane
• Liquefied Petroleum Gas (LPG)

History of Petroleum

In the old times, petroleum gained importance when its usage increased in industrial organic chemistry specifically when it was being used in synthesis of fertilizers, solvents, plastic, adhesives and pesticides. With its increased use in commercial aviation, the importance of petroleum kept on escalating in technology, economy and other sectors.

China was the first country to produce and use petroleum. In 347 A.D, China was producing petroleum through bamboo drilled wells. In 1795, British explorers did coverage of an industry in Myanmar that had many wells for extraction of petroleum. In Europe, Pechelbronn is considered to be the first site where petroleum was discovered and made ready for use. In 1848, a chemist James Young started a crude oil refining business in Derbyshire. The first ever oil refinery was built by a person named Ignacy Lukasiewicz in 1856. First commercial well was dug in 1853 in Poland, the next one was dug in 1857 in a region somewhere near Romania. In 1858, Canada made its first commercial well operational. In the start of 20^th century, Russia was leading in the production of petroleum.

Most of the oil in the world is produced by Unites States, Russia and Saudi Arabia. 80% of the oil reserves are in Middle East where majority providers are Qatar, Iraq, Kuwait, Saudi Arabia and United Arab Emirates. In 2018, United States was declared to be world’s largest producer of petroleum since they incorporated new techniques in drilling like hydraulic fracturing and horizontal drilling.

Petrol Prices in Pakistan

Back in 1990’s, before the introduction of CNG, petrol was the only option of fuel for car owners. Since traveling was part of daily life, one had to pay for getting his car refueled no matter what the petrol rates were. Since other amenities were not that pricey at that time, paying a bit more for fuel wasn’t that big of an issue for car drivers back then. Petrol prices were around 0.5 USD per litre at that time. Since then petrol prices have been rising constantly. During Zardari regime, petrol prices became outrageously high which was one of the main reasons that a large number of Pakistanis got their vehicles settings converted for CNG use which was fairly cheaper than petrol. When Zardari regime ended, the petrol prices became considerably low and the Pakistani citizens were able to get their vehicles refueled for as low as 65 PKR per litre for a long time. Towards the end of Nawaz regime, nearly when interim government took over, the economic situation in Pakistan became a bit unstable leading to drastic changes in petrol prices. This was a crucial time for the citizens of Pakistan who were already putting up with inflation and financial instability in the country to pay so much for fuel. Since then government has been changed and increase in petrol prices has remained constant. Though people are not much pleased with this scenario, let’s see for how long their patience is tested.

Price Fixing

The price of petroleum and other derivates in Pakistan is determined by Oil and Gas Regulatory Authority (OGRA). Price of petroleum depends on many factors, one of them being its supply. Lesser supply by OPEC to other countries causes a hike in it local price as well. Increased prices of distribution and marketing also heavily impact petrol prices as retail dealers add their profit to the total cost of fuel. Added federal and government taxes make petrol prices go further up. The prices are revised every month and can be checked online.