According to the World Bank, fuel prices across South Asia may look similar when measured in US dollars, but the real impact on people is very different. The key issue is not just the price of petrol, but how affordable it is based on people’s income. This is where Pakistan stands out as the most affected country in the region.
In Pakistan, petrol is priced at around $1.41 per litre, which is close to prices in neighboring countries like India, Bangladesh, and Sri Lanka. However, the difference comes in income levels. Pakistan has the lowest per capita income among these countries, which means people earn less but still pay similar prices for fuel. This creates a much heavier financial burden on households.
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In countries like India, Bangladesh, and Sri Lanka, higher income levels help people manage fuel costs more easily. Even if petrol prices are similar, stronger earning capacity allows families to absorb these expenses without as much stress. In Pakistan, however, rising fuel prices directly affect daily life, increasing transportation costs, food prices, and overall inflation.
This situation makes Pakistani households more vulnerable to economic pressure. When fuel prices rise, it triggers a chain reaction that impacts almost every sector of the economy. Without significant growth in income levels, this gap between fuel prices and affordability will continue to widen.
The report highlights the need for policies that focus on increasing income, improving economic stability, and protecting consumers. Until then, fuel costs will remain a major challenge for people in Pakistan compared to other countries in South Asia.
