Petrol at Rs. 30 Per Litre? Economist Atif Mian Explains a Different Reality for Pakistan
A recent statement by Atif Mian has triggered a strong debate across Pakistan, after he suggested that fuel costs could effectively drop to the equivalent of Rs. 30 per litre—but not in the way most people think.
The Idea Behind “Rs. 30 Petrol”
Taking to the social media platform X, the Princeton University professor clarified that people don’t actually consume petrol itself—they pay for mobility and transportation. According to him, this same mobility can be achieved much more cheaply through electric alternatives.
To explain, he compared two scenarios:
A fuel-efficient motorbike typically travels around 60 km per litre of petrol
An electric scooter can cover a similar distance using roughly 2 kWh of electricity
This comparison highlights that electric transport can significantly reduce travel costs, especially when powered by cheaper energy sources.
Pakistan’s Solar Potential Could Be a Game-Changer
Mian emphasized that Pakistan has strong potential in solar energy. He pointed out that electricity generated through solar power can cost around 5 cents per kWh, making it one of the most affordable energy options available in the country.
When applied to electric vehicles, this translates to a travel cost close to Rs. 30 per litre equivalent, which is dramatically lower than current petrol prices hovering near Rs. 300.
Policy Gaps Driving High Fuel Prices
According to Mian, the massive difference between current fuel costs and potential electric alternatives is largely due to policy decisions. He criticized:
Heavy dependence on imported fuel
Power projects tied to the US dollar
Lack of support for electric vehicles (EVs) and solar infrastructure
He argued that these choices have made energy unnecessarily expensive for consumers.
Missed Opportunities for Economic Growth
The economist also highlighted how Pakistan may have missed key opportunities in developing local industries. For instance:
Solar energy systems could allow small businesses to generate and sell electricity
Battery swapping networks could have evolved into a scalable domestic industry
Instead of spending billions on fuel imports, Mian believes Pakistan could invest in:
EV charging infrastructure
Smart electricity pricing
Local energy production
Such steps could not only reduce costs but also create jobs and boost investment.
A Shift Toward Cleaner and Cheaper Energy
Mian concluded that adopting smarter energy solutions would bring multiple long-term benefits:
Lower transportation costs
Reduced air pollution
More stable energy demand
Stronger economic growth
However, he also criticized past strategies that favored fossil fuel plants and protected traditional automobile sectors, saying these decisions slowed down the transition to cleaner technologies.
Public Reaction: Mixed Opinions
The statement has sparked mixed reactions online. While many appreciated the forward-looking approach, others argued that the comparison could be misleading, noting that the discussion is about electric travel cost, not the actual price of petrol.
