Picodi.com analysts examined the dynamics of petrol price change in Pakistan and around the world in the first half of the year and calculated how many liters of petrol an average Pakistani earning an average wage can afford.
Petrol Index is created annually by Picodi and the 2023 version is the 5th one they did. According to the findings:
Petrol prices have stabilized
In the first 6 months of 2023, the prices of petrol in our region remained stable. In most countries, the petrol price in June remained unchanged or differed from the price in January by less than 10%. Only in Pakistan petrol became noticeably more expensive – 22%. On the other hand, petrol in Sri Lanka, was cheaper by 25.5% than in January 2023. The petrol prices remained unchanged in India and Malaysia, where the price of fuel is controlled by the government.
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According to the report, in Pakistan, the average petrol price in June 2023 was Rs. 262.00, which is Rs. 47.20 more than in January (Rs. 214.80).
Since our currency value has depreciated by a huge margin within the last one and a half years or so, the price of petrol that we pay in terms of Dollars looks very cheap which is $0.92/liter. In Indonesia, it is $0.85/liter, and in Malaysia, it is $0.44/liter. On the other hand, the highest petrol prices have to be paid by drivers from Hong Kong ($2.99/liter), Singapore ($1.96/liter), and New Zealand ($1.57/liter). In Pakistan, petrol costs $0.92/liter, which is 34 cents less than the continental average.
However, when we compare it to our people’s average incomes, we get an eye-opening perception. According to the newest Numbeo data, the average wage in Pakistan is Rs. 43,534 net monthly. This means that an average Pakistani can buy just 166 liters of petrol (16th out of 17 countries). This is what the petrol index in Pakistan looked like in the last 5 years:
- 2019 – 192 liters;
- 2020 – 351 liters;
- 2021 – 319 liters;
- 2022 – 158 liters;
- 2023 – 166 liters.
This also demonstrates that, during the last five years, the average Pakistani’s purchasing power in terms of fuel has been cut in half, falling from 351 liters in 2020 to 166 liters in 2023, though it dipped to the lowest last year at 158 liters.
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With the average wage, the most petrol can be bought by the citizens of high-wage countries – Aussies (3,669 liters), South Koreans (2,132 liters), and Kiwis (1,960 liters).
Methodology
Petrol Index is an annual ranking of the relationship between petrol prices and salaries conducted by Picodi.com since 2019. In this study, the latest average wage data published by national statistics offices or relevant ministries were used. In countries where such data is not published, statistics from Numbeo were utilized.
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The average petrol prices in 104 countries in the first half of 2023 were taken from GlobalPetrolPrices.com and other local sources. The difference between prices in June and January was calculated in local currencies. In order to calculate the “Petrol Index”, we divided the average net wage (obtained through local wage calculators) by an average price of a liter of petrol in June. For currency conversion, we used the average exchange rate data from Google Finance for June 2023.
Source: Picodi
A computer animation professional with over 23 years of industry experience having served in leading organizations, TV channels & production facilities in Pakistan. An avid car enthusiast and petrolhead with an affection to deliver quality content to help shape opinions. Formerly written for PakWheels as well as major publications including Dawn. Founder of CarSpiritPK.com
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