Renowned Pakistani economist Atif Mian has sparked debate after claiming that petrol in Pakistan could effectively cost as low as Rs. 30 per litre, arguing that the current high prices reflect policy failures rather than economic reality.
In a post on X, Atif Mian, who is known for his work on finance and economic crises and is currently a professor at Princeton University, said people do not actually consume petrol itself but use it for travel, which can be achieved far more cheaply through electric alternatives.
He explained that a fuel-efficient motorbike can travel about 60 kilometers per litre, while an electric scooter can cover the same distance using roughly 2 kWh of electricity.
According to him, Pakistan is one of the best countries for solar energy, where electricity can be generated at around 5 cents per kWh, translating into roughly 10 cents or about Rs. 30 per litre equivalent in travel cost.
Mian argued that the large gap between Rs. 300 and Rs. 30 reflects poor policy choices, including reliance on expensive imported fuels, dollar-based power projects, and a lack of support for decentralized solar and electric vehicle infrastructure.
He said billions of dollars currently spent on fuel imports could instead be used to build EV charging networks, battery swapping systems, and smart electricity pricing, creating jobs and boosting local investment.
The economist also highlighted missed opportunities for small businesses, noting that solar energy’s modular nature could allow local producers to generate and sell electricity, while battery swapping could have developed into a scalable domestic industry.
He added that cheaper and smarter electricity use could help stabilize demand, reduce costs for consumers, and improve air quality, ultimately supporting long-term economic growth. Mian criticized past policies for prioritizing fossil fuel plants and protecting traditional auto sectors, saying these decisions have led to higher electricity costs and slowed the adoption of cleaner technologies.