Crude Oil Price Today & Its Impact on Petrol Prices in Pakistan

When you fill up your tank in Pakistan, the price you pay at the pump is directly linked to a commodity traded on global markets thousands of miles away: crude oil. Understanding how international oil prices — particularly Brent Crude and WTI (West Texas Intermediate) — flow through to Pakistan's petrol, diesel, and kerosene prices helps you anticipate price changes and plan your budget accordingly.

What Is Crude Oil and Why Does It Matter?

Crude oil is unrefined petroleum extracted from the ground. It is the raw material from which petrol (gasoline), diesel, kerosene, LPG, and dozens of other products are made. Every country that imports oil — including Pakistan — buys it on global commodity markets priced in US dollars per barrel.

Pakistan imports roughly 80–85% of its petroleum needs, making it highly sensitive to global oil price movements. When Brent Crude rises by $10 per barrel, Pakistan's import bill increases significantly, and OGRA (the Oil and Gas Regulatory Authority) typically passes this cost on to consumers at the pump within one to two fortnightly revision cycles.

What Is a Barrel of Oil? How Many Litres?

One barrel of crude oil equals 158.987 litres — approximately 159 litres. This unit dates back to the 19th century American oil industry, when oil was physically stored and transported in 42-gallon wooden barrels. Today, no actual barrel is involved — it is simply the standard international unit for quoting crude oil prices.

So when you see Brent Crude at $80 per barrel, the raw crude cost per litre is:

$80 ÷ 159 litres = $0.503 per litre (approximately PKR 140 at current exchange rates)

Yet Pakistan's pump price for RON 95 petrol is around PKR 293–440 per litre. The gap between PKR 140 (raw crude) and PKR 440 (pump price) is explained below.

Brent Crude vs WTI: Which One Affects Pakistan?

Two benchmarks dominate global oil pricing:

Brent Crude — sourced from the North Sea, used to price approximately two-thirds of the world's internationally traded oil. This is the benchmark most relevant to Pakistan, since Pakistani imports are priced against Brent.
WTI (West Texas Intermediate) — the US benchmark, typically $2–5 cheaper than Brent. WTI reflects North American supply and demand more closely and is less directly relevant to Pakistan but is widely watched as a global indicator.

You can track both benchmarks live on AmrokGate's Fuel Prices page, including the PKR equivalent per barrel and per litre.

Why Are Pump Prices Higher Than the Raw Crude Cost?

The journey from a barrel of crude oil to a litre of petrol at your local pump involves several cost layers. For Pakistan, these typically include:

Refining costs: Crude oil must be distilled and processed into petrol, diesel, and other products. Pakistan's domestic refineries (PARCO, NRL, ARL, PRL) add a refinery margin of PKR 8–15 per litre.
Petroleum Development Levy (PDL): A government levy, which can range from PKR 0 to PKR 60 per litre depending on government policy. This is a major revenue source and the single biggest contributor to the gap between crude cost and pump price during periods of high government levy.
General Sales Tax (GST): Currently 0% on petroleum products under some relief packages, but historically up to 17%.
Import duty and freight: Costs to ship oil from the Middle East, West Africa, or Russia to Pakistani ports.
OMC (Oil Marketing Company) margin: Distributors like PSO, Total, Shell, and Hascol add their distribution margin.
Dealer/retailer margin: The petrol station operator's margin, fixed by OGRA.

In total, government levies alone can account for 30–50% of the pump price during normal policy periods, which is why pump prices can remain high even when global crude oil prices fall significantly.

How OGRA Sets Pakistan's Fuel Prices

Pakistan's fuel prices are not market-determined at the pump. Instead, OGRA (the Oil and Gas Regulatory Authority) calculates the ex-refinery price based on:

The average international price of the relevant petroleum product (e.g., Motor Spirit 92 for petrol) over the previous fortnight
The PKR/USD exchange rate over the same period
The applicable government levies (PDL, GST)
Refinery, OMC, and dealer margins

OGRA submits a recommendation to the federal government, which has the final authority to set prices. Revisions happen on the 1st and 16th of each month. This fortnightly cycle means that a sharp drop or rise in Brent Crude takes roughly 2–4 weeks to fully reflect at Pakistani pumps.

Historical Context: When Oil Shocks Hit Pakistan

Pakistan has experienced several major oil price shocks in recent years:

2022 Russia-Ukraine war: Brent surged above $120/barrel, sending Pakistan's petrol price to record highs above PKR 280/litre and contributing to a broader economic crisis.
2020 COVID collapse: Brent briefly went negative (a historic anomaly), and Pakistan passed on some reduction, though PDL was increased to maintain revenue.
2023–2024 PKR depreciation: Even when Brent was moderate ($70–85), the rupee's fall from PKR 200 to PKR 280+ per dollar pushed pump prices higher independently of crude movements.

How to Track Fuel Prices in Pakistan

AmrokGate's Fuel Prices page shows:

Current petrol prices in Pakistan (RON 87 through RON 100) updated after each OGRA revision
Diesel prices (High Speed Diesel) — critical for transport and agriculture
CNG prices in Pakistan per kg
Live Brent Crude and WTI barrel prices in USD, with PKR equivalent and per-litre breakdown
Fuel prices for 10 countries including UAE, Saudi Arabia, UK, Germany, and more for comparison

Bookmark the page and check it around the 1st and 16th of each month when OGRA's revision takes effect.

Frequently Asked Questions

Does Pakistan produce its own crude oil?
Yes, but in small quantities. Domestic production meets only 15–20% of demand. The rest is imported, primarily from the Middle East (Saudi Arabia, UAE) and increasingly from Russia at discounted prices.

Why does diesel sometimes cost more than petrol in Pakistan?
Diesel and petrol prices are set independently based on their respective international product prices. High Speed Diesel (HSD) tracks Gas Oil prices on the international market, which can diverge from Motor Spirit (petrol) prices. Diesel also carries high PDL in periods when the government needs revenue from commercial transport.

What happens to CNG prices when oil prices rise?
CNG (Compressed Natural Gas) in Pakistan is priced based on domestic natural gas supply and OGRA's regulated tariff — it does not directly track crude oil. However, when petrol prices spike, demand for CNG rises sharply, which can lead to supply shortages and subsequent price revisions.