Pakistan has the least affordable fuel in South Asia when measured against per capita income, even though pump prices across the region remain broadly similar in dollar terms, according to World Bank income data and regional fuel price comparisons.

Petrol in Pakistan is priced at about $1.41 a litre, compared with around $1.10 in India, $1.05 in Bangladesh and $1.40 in Sri Lanka, based on calculations using an exchange rate of about Rs. 278 to the dollar. While the per-litre gap is relatively narrow, the burden on consumers differs sharply because of wide variations in income levels.

Pakistan’s per capita income is estimated at about $1,400 to $1,600, well below India’s roughly $2,600 to $2,700, Bangladesh’s $2,500 to $2,600 and Sri Lanka’s more than $4,500. That makes Pakistan the most financially strained among the major South Asian economies in terms of fuel affordability.

The disparity means fuel costs consume a larger share of household income in Pakistan than in neighboring countries, leaving consumers more exposed to global oil market swings and domestic inflation pressures.

The affordability gap widened further after Pakistan raised petrol and diesel prices on Friday by Rs. 26.77 per litre, taking petrol to Rs. 393.35 per litre and diesel to Rs. 380.19 per litre.

By contrast, relatively higher income levels in India and Bangladesh provide some cushion against fuel price volatility, while Sri Lanka now has the strongest affordability position among the four countries despite its sovereign default in 2022.

The comparison highlights that the challenge for Pakistan is not only the absolute price of fuel, but the gap between energy costs and earnings. Unless incomes rise more quickly, fuel-led inflation is likely to remain more severe in Pakistan than elsewhere in the region.