Yesterday, the petroleum prices are again revised and the petrol prices increased by 5 rupees in Pakistan. After every 15 days, Oil & Gas Regulatory Authority sends a new summary to the government for new prices (for 15 days). The government then takes the action. Last time they decreased petrol prices by 5 rupees and this time they have increased them by 5 rupees.
Other petroleum products are also changed. The Hi-speed diesel, petrol, and kerosene oil prices are changed while light diesel oil remains unchanged. The new fuel prices are as under:
A few days earlier it was stated by many TV Channels that the Government is thinking about launching cheaper petrol for Motorcycle and Rickshaw users. The cheaper petrol is estimated to be a low ron fuel (87 ron) which was available before in Pakistan (reddish in colour). The low ron petrol is high on sulphur and low on octanes.
The low-octane fuel can work easily in low-compression engines but the fuel efficiency is not as good. If low ron fuel is used in a high-compression engine it will start knocking, heat up and other issues. As the majority 2 wheelers and rickshaws in Pakistan are low compressions, the low ron fuel will work on them easily.
Also, the price point of low ron/ cheaper petrol is very important. If there is a significant difference, only then end consumer will go for the low ron or cheaper fuel. If there is no significant difference then no one will bother using a low-performing fuel in their automobile.
Ironically fuel prices are increased in Pakistan when the international market trend is on the lower side. Pakistan produces crude oil but it is not enough to fulfil its needs. The government is also thinking about EV conversion but Pakistan is also facing an electricity shortfall too!