Petrol Bomb: When the Burden of Governance Falls on the People

By Major (R) Haroon Rasheed, a Defense and Strategic Analyst specializing in South Asian military dynamics, deterrence strategy, and defense modernization, and a member of the Research and Evaluation Cell for Advancing Basic Amenities and Development.

Pakistan is once again witnessing what the public commonly calls a Petrol bomb. The recent increase of approximately Rs. 55 per liter in petroleum prices has sent shockwaves through households, transporters, and businesses already struggling under relentless inflation.

At a time when citizens expected relief, the decision instead intensified the economic pressure on millions of families.

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Pakistan’s daily oil consumption stands at roughly 480,000 barrels, which translates to around 78 million liters per day.

According to available data, the country maintains approximately 28 days of strategic reserves, amounting to nearly 13.44 million barrels, or about 2.15 billion liters of petroleum products stored within the system.

When prices are suddenly raised by Rs. 55 per liter, the existing reserves—purchased earlier at lower international rates—instantly gain enormous book value. By simple arithmetic, this translates into roughly Rs. 118 billion in additional value on already stocked fuel.

For ordinary citizens, the critical question is simple: who benefits from this windfall?

A System That Appears Unjust

In theory, petroleum pricing in Pakistan is regulated through a framework involving the government, the Oil and Gas Regulatory Authority (OGRA), and private oil marketing companies. The official justification often revolves around fluctuations in international markets, currency depreciation, and fiscal pressures.

However, public perception increasingly suggests that the system disproportionately favors oil companies, large distributors, and those with the capacity to store fuel before price revisions. When prices rise suddenly, the existing stocks held by these entities appreciate overnight, creating massive gains without additional economic activity.

Meanwhile, the common citizen—who neither controls reserves nor influences policy—simply pays the higher price.

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The Human Cost

The increase in petroleum prices does not remain confined to fuel pumps. In Pakistan’s fragile economic structure, petrol and diesel are the backbone of transport, agriculture, industry, and electricity generation. A single price increase triggers a chain reaction:

Transport fares rise immediately
Food prices increase due to higher logistics costs
Electricity generation costs a surge where furnace oil or diesel is used
Businesses face higher operational expenses

Ultimately, inflation accelerates.

For a population already grappling with high electricity tariffs, rising gas charges, heavy taxation, and stagnant wages, the consequences are severe. Pakistan’s daily wage earners and salaried classes have little capacity to absorb these shocks. For many families, basic necessities are becoming unaffordable.

The Structural Problem

Pakistan’s economy is already heavily dependent on remittances from overseas Pakistanis and external borrowing. Domestic industry struggles with high energy costs, regulatory uncertainty, and limited access to affordable credit.

Increasing petroleum prices in such an environment makes the cost of doing business even more prohibitive. Manufacturing competitiveness declines, exports suffer, and investment slows. Instead of stimulating economic growth, policies risk pushing the country deeper into economic stagnation.

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Silhouette three oil pumps

A Question of Equity

Perhaps the most painful question for ordinary citizens concerns fairness.

While the public bears the burden of rising fuel costs, many government officials and segments of the bureaucracy continue to receive free or heavily subsidized petrol, electricity, and other utilities as part of official privileges.

This raises a fundamental question of governance:

Should those who make economic decisions remain insulated from their consequences?

In any functioning democracy, economic hardship must be shared across society, particularly by those in positions of authority. When policymakers remain shielded from the effects of their own policies, public trust inevitably erodes.

The Legal and Governance Dimension

Transparency and accountability are essential in the petroleum pricing mechanism. The government must clearly explain:

The exact formula used for price increases
The role and profit margins of oil marketing companies
The tax components embedded in each liter of fuel
The management of national strategic reserves

Parliamentary oversight and independent audits should ensure that public resources are not indirectly enriching private interests.

Without transparency, suspicions of collusion between regulators, oil companies, and influential stakeholders will only grow stronger.

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The Road Ahead

Pakistan stands at a critical economic crossroads. The country can not afford policies that deepen inequality and weaken public confidence.

Real reforms must include:

Transparent fuel pricing mechanisms
Reduction of unnecessary privileges within the state structure
Protection of lower-income households through targeted relief
Long-term investment in energy diversification and efficiency

Above all, governance must prioritize public welfare over short-term fiscal maneuvering.

The people of Pakistan have shown extraordinary resilience through decades of economic turbulence.

Yet resilience should not be mistaken for limitless endurance.

A nation can not progress when its citizens feel that the system is working against them rather than for them.

Crude oil depots in Al Ahmadi, Kuwait. The price of the commodity has gone up by more than 25% since the US and Israel began their assault on the Tehran regime. Photograph: Nicolas Economou/Reuters.