The latest hike in petrol and diesel prices has, unsurprisingly, provoked public frustration. Yet these recurring spikes and the often hurried policy responses that follow cannot be fully understood without acknowledging a deeper structural issue: Pakistan’s heavy reliance on imported energy.

At present, local refineries meet only around 30 percent of the country’s petrol demand. The remaining 70 percent is imported as refined fuel. Overall, Pakistan imports close to 80 percent of its oil needs, whether in crude or refined form. This is not a minor weakness — it is the central reality shaping the country’s energy landscape.

The consequences are both simple and far-reaching. Even domestically refined fuel is priced according to import parity. In practical terms, this means that whether petrol is produced within Pakistan or brought in from abroad, its price is tied to international oil benchmarks and the rupee–dollar exchange rate. For consumers, this translates into a situation where global market movements matter far more than domestic policy choices.

This vulnerability is compounded by the scale and nature of fuel consumption. Pakistan uses an estimated 50 to 75 million litres of fuel each day. While petrol is important, diesel plays an equally vital role — powering transport networks, agricultural activity, and the logistics systems that underpin economic activity. When fuel prices rise, the effects ripple quickly beyond fuel pumps, driving up food prices, transport fares, and the overall cost of living.

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