Pakistan is facing the highest fuel affordability burden in South Asia, even though petrol prices remain broadly similar across the region in US dollar terms. New comparative data based on World Bank indicators highlights a growing income gap that places Pakistan at a disadvantage compared to neighboring economies.
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Fuel affordability Pakistan South Asia comparison shows that petrol prices in Pakistan, India, Bangladesh, and Sri Lanka often move within a close range depending on global oil trends, taxation policies, and exchange rate movements. However, the real pressure emerges when these prices are measured against income levels.
Petrol Prices Remain Close Across Region
Recent data shows that petrol prices in the region remain relatively aligned in international dollar terms. Pakistan records petrol prices at around $1.41 per litre. India follows at $1.10 per litre, while Bangladesh stands at $1.05 per litre. Sri Lanka reports approximately $1.40 per litre.
Despite minor differences, the overall pricing trend reflects global oil market movements and domestic tax structures. Currency depreciation and subsidy adjustments also influence final retail rates in each country.
In local currency terms, Pakistan’s petrol price stands at around Rs. 393 per litre. India records Rs. 310 to Rs. 315 per litre. Bangladesh shows Rs. 325 to Rs. 335 per litre. Sri Lanka reports Rs. 355 to Rs. 365 per litre.
Income Gap Creates Major Affordability Crisis
The real disparity appears when comparing fuel prices with per capita income across South Asia. According to World Bank-based estimates, Pakistan’s per capita income ranges between $1,400 and $1,600.
India reports a higher per capita income of around $2,600 to $2,700. Bangladesh stands close behind at $2,500 to $2,600. Sri Lanka leads the region with more than $4,500 per capita income.
This gap places Pakistan at the bottom of South Asia in terms of purchasing power. As a result, fuel costs take a much larger share of household income in Pakistan compared to its regional counterparts.
Pakistan Faces Highest Fuel Pressure in Region
The data clearly indicates that Pakistan remains the most financially strained country in South Asia when it comes to fuel affordability. Even small increases in petrol prices place a heavier burden on households due to lower income levels.
Economists say this imbalance makes Pakistan more vulnerable to global oil price fluctuations. It also increases pressure on transport costs, food supply chains, and inflation rates.
In contrast, countries like India and Bangladesh maintain relatively stronger income levels, which help absorb fuel price shocks more effectively. Sri Lanka, despite its recent economic crisis and sovereign default in 2022, now shows stronger per capita income recovery compared to Pakistan.
Sri Lanka Shows Recovery Despite Past Economic Crisis
Sri Lanka, which defaulted on its sovereign debt in April 2022, now reports the highest per capita income among the four South Asian countries in this comparison. The recovery reflects structural reforms and stabilization efforts in recent years.
While fuel prices in Sri Lanka remain close to regional averages, higher income levels provide better affordability capacity for consumers.
Pakistan Remains Exposed to Global Oil Shocks
Experts note that Pakistan’s lower income base makes it highly sensitive to global oil price changes. Any increase in international crude prices quickly translates into higher domestic fuel costs.
This creates ripple effects across the economy, including rising transportation costs, higher food prices, and increased production expenses.
Analysts suggest that without significant income growth and structural economic reforms, Pakistan will continue to face the highest fuel affordability pressure in South Asia.