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While fuel prices across South Asia remain broadly similar in US dollar terms, income-based data shows that Pakistan faces the most severe fuel affordability pressure in the region due to its comparatively low per capita income.

According to the latest available estimates from the World Bank (2024–2025 data series), per capita incomes in major South Asian economies are as follows:

  • Sri Lanka: around $4,500+ per year
  • India: around $2,600–$2,700 per year
  • Bangladesh: around $2,500–$2,600 per year
  • Pakistan: around $1,400–$1,600 per year

These figures confirm that Pakistan has the lowest per capita income among the major South Asian economies, significantly trailing regional peers.

Economists note that while fuel prices in Pakistan, India, Bangladesh, and Sri Lanka often remain within a similar per-litre range depending on global oil trends, taxation policies, and currency movements, affordability differs sharply when measured against income levels.

In Pakistan’s case, lower income levels mean that fuel expenses take up a larger share of household earnings compared to neighbouring countries. This makes the country more vulnerable to global oil price fluctuations and domestic cost pressures.

By contrast, India and Bangladesh have relatively higher per capita incomes, which help cushion consumers against fuel price volatility. Sri Lanka, despite recent economic challenges, currently reports the highest per capita income among the four, giving it comparatively stronger affordability capacity.

While petrol prices in Pakistan ($1.41/litre), India ($1.1/litre), Bangladesh ($1.05/litre), and Sri Lanka ($1.4/litre) often remain within a similar per-litre range depending on global oil trends, taxation policies, and currency/$ rate, affordability differs sharply when measured against income levels.

According to the latest World Bank estimates (2024–2025), Pakistan’s per capita income stands at roughly $1,400–$1,600, significantly lower than India ($2,600–$2,700), Bangladesh ($2,500–$2,600), and Sri Lanka ($4,500+ after recent economic recovery).

On this basis, Pakistan consistently ranks as the most financially strained country in South Asia in terms of fuel affordability.

Experts emphasize that the issue is not only the absolute fuel price but the ratio between income and energy costs. On this basis, Pakistan consistently ranks as the most financially strained country in South Asia in terms of fuel affordability.

Analysts warn that unless income growth improves, fuel-related inflationary pressure is likely to remain disproportionately high for Pakistani consumers compared to regional peers, even if fuel prices remain broadly similar across the region.

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