Pakistan Now Ranks Worst in South Asia for Petrol Prices Relative to Income

While fuel prices across South Asia remain almost similar in US dollar terms, Pakistan faces the most expensive fuel prices in the region relative to per capita income, according to the latest World Bank data on GDP per capita.

Calculations are based on PKR=~278/US$. Rates for other countries have been rounded off for comparison because rates fluctuate based on different states and taxes.

While petrol prices in Pakistan ($1.41/litre), India ($1.1/litre), Bangladesh ($1.05/litre), and Sri Lanka ($1.4/litre) often remain within a similar per-litre range depending on global oil trends, taxation policies, and currency/$ rate, affordability differs sharply when measured against income levels.

On this basis, Pakistan consistently ranks as the most financially strained country in South Asia in terms of fuel affordability.

(e.g. It would be ₹94/litre in New Delhi but over ₹100-110 in Mumbai, Hyderabad, etc.)

In Pakistan, lower income levels mean that fuel expenses take up a larger share of household earnings compared to neighbouring countries. This makes the country more vulnerable to global oil price fluctuations and domestic cost pressures.

According to the latest available estimates from the World Bank, per capita incomes in major South Asian economies are as follows:

According to the latest World Bank estimates (2024–2025), Pakistan’s per capita income stands at roughly $1,400–$1,600, significantly lower than India ($2,600–$2,700), Bangladesh ($2,500–$2,600), and Sri Lanka ($4,500+ after recent economic recovery).

As of end-2025, Pakistan has the lowest per capita income among the major South Asian economies, way below its regional peers.

By contrast, India and Bangladesh have relatively higher per capita incomes, which help cushion consumers against fuel price volatility.

Sri Lanka currently reports the highest per capita income among the four, giving it comparatively stronger affordability capacity. This is a pretty big leap for a country that declared a sovereign default on debt payments back in April 2022.

The issue is not only the absolute fuel price but the ratio between income and energy costs. The dollar cost for fuel remains almost the same, but when compared to income levels, the story changes altogether, particularly for Pakistan.

On Friday, Pakistan increased petrol and diesel prices by Rs. 26.77 per litre to Rs. 393.35 per litre and Rs. 380.19 per litre, respectively.

Unless income growth improves, fuel-related inflationary pressure is likely to remain disproportionately high for Pakistani consumers compared to their regional peers.