Kerosene Oil Price in Pakistan Today

What Is Kerosene Oil?

Kerosene oil — also known as paraffin oil, mitti ka tel in Urdu, or technically as illuminating kerosene — is a light petroleum distillate that falls between petrol and diesel in the refining process. It is a colourless to pale yellow liquid with a distinctive odour. Kerosene burns cleanly at relatively low temperatures, making it ideal for use in simple wick-based stoves and lamps that do not require pressurised fuel systems. It is one of the oldest petroleum products in commercial use, predating the automobile era.

Kerosene Use in Rural Pakistan

Despite electrification efforts and the widespread availability of Liquefied Petroleum Gas (LPG), kerosene oil remains a critical fuel for rural and off-grid communitiesacross Pakistan. In provinces like Balochistan— Pakistan's largest but least electrified province — millions of households in remote areas still depend on kerosene for their daily cooking and lighting needs.

In hilly and mountainous areas of Khyber Pakhtunkhwa and Gilgit-Baltistan, kerosene lamps are common during winter months when electricity supply is unreliable. In the rural interiors of Sindh and southern Punjab, kerosene stoves provide an accessible and affordable alternative to LPG for daily cooking.

The simplicity of kerosene appliances — requiring no gas cylinders, pressure regulators or electrical connections — is a major advantage in areas with limited infrastructure. A basic kerosene stove or lantern costs very little and can be purchased in any village market, making kerosene the fuel of last resort for Pakistan's most marginalised communities.

Kerosene for Cooking and Lighting

Cooking: Kerosene stoves (known as kerosene stoves or stove in local parlance) are used to cook food in areas where wood, LPG and natural gas are unavailable or unaffordable. While kerosene stoves are slower than gas stoves and require more careful handling, they are reliable and work without any grid infrastructure.

Lighting: Before rural electrification, the kerosene lamp was the primary source of artificial lighting across rural Pakistan. While LED solar lanterns have made inroads in many areas, kerosene lamps remain a backup lighting source in areas with frequent power outages or no electricity at all. Emergency kerosene lanterns are also kept in many urban households for use during load-shedding.

Kerosene Price Policy in Pakistan

The government of Pakistan has historically maintained a lower tax burden on kerosene compared to petrol and diesel. The Petroleum Development Levy (PDL) on kerosene is typically set at a lower rate, reflecting the social importance of kerosene for low-income households. This policy aims to keep kerosene affordable for the most vulnerable segment of the population, for whom fuel costs represent a significant share of household expenditure.

Like all petroleum products, kerosene prices in Pakistan are reviewed every fortnight by OGRA. The price is influenced by international kerosene/jet fuel benchmarks (as they share similar refining streams), the PKR exchange rate and government tax policy.

Transition Away from Kerosene

Pakistan's kerosene demand has been declining over the past decade as rural electrification expands, LPG becomes more accessible through cylinder distribution networks, and solar lanterns become more affordable. Government programmes to increase LPG access in underserved areas, as well as initiatives like solar-powered home systems, are gradually reducing kerosene dependence. However, this transition is slow, and kerosene remains essential for millions of households in the foreseeable future.