With petrol costing less than a dollar a litre, how has Afghanistan managed to avoid the current oil crisis?

Fuel+prices+in+afghanistan
Afghanistan, one of the world's least developed countries, also has a very low energy consumption (Photo: AFP) 


While the month-long closure of the Strait of Hormuz plunged most Asian countries into an energy crisis, fuel and gas prices in Afghanistan were among the lowest in the region. It was a quiet success that Afghanistan had achieved through years of experience.

According to the report, the price of gasoline in Afghanistan is less than a dollar per liter, while diesel is only a few cents more. 

While in many countries around the world, the purchase of fuel at the pump and gasoline is limited due to the increase in transportation costs and the implementation of the country's employment policy, in Afghanistan there is no change in the market trend and supply of goods.

According to Ahmad Yousef Raufi, manager of the Raufi gas station in Kabul, "the situation here is better than in the rest of the world. There has been no change in our customers, the prices of taxis and buses are the same." 

In contrast, fuel prices in neighboring Pakistan have increased by more than 40 percent, with gasoline reaching $1.6 and diesel reaching about $1.9 per liter. 

"We are better than Pakistan. The market here is diversified and taxes are low. We are not dependent on imports through the Strait of Hormuz," Raufi said.

Afghanistan, one of the world's least developed countries, also has very low energy consumption. The country of 45 million people has few energy-intensive industries, while these sectors are the largest energy consumers in developed countries. 


Fuel+prices+in+Pakistan
Fuel prices in Pakistan have risen by more than 40 percent, with gasoline prices reaching $1.6 per liter (Photo: AFP)


However, relations with neighboring countries also play an important role in terms of supply. Landlocked Afghanistan has been dependent on Pakistan for decades for essential goods such as meat, flour, rice, cooking oil, and medicine. During the conflict, Afghan officials often accused Pakistan of exerting political pressure by closing border crossings, which caused prices to rise.

According to Shafi Azam, director of economic affairs at the Afghan Ministry of Foreign Affairs, "Every time the border was closed, the price of flour increased by several hundred Afghanis. Pakistan used these crossings as a tool of political pressure against us."

Although Pakistan remains Afghanistan’s most important trading partner, especially for exports, Afghan authorities have begun to reduce their dependence on imports. 

This was initiated by the former pro-Western government, and the same strategy continued even after US forces withdrew from Afghanistan in 2021 and the Taliban came to power. 

The former government chose Central Asian countries, including Russia, Uzbekistan and Kazakhstan, to import flour and cooking oil. The Taliban did the same for medicines, which previously accounted for 80% of imports from Pakistan, and when tensions between the two countries flared in October last year, Afghanistan turned to markets in Bangladesh, India, Turkey and Uzbekistan.

Diversifying energy sources is also part of this policy. According to data from the Ministry of Industry and Trade, Afghanistan spent about $2.5 billion on importing gasoline, diesel and LPG in 2025. 

Although Iran has traditionally been Afghanistan's main energy supplier, steady imports from Central Asian countries in recent months have kept fuel prices at their lowest level since October 2024, according to a United Nations report.

When Middle Eastern fuel exports were hit early last month by the US and Israel's war with Iran, this diversification kept Afghanistan out of the crisis, unlike other countries in South Asia and the Far East. 

According to Shafi Azam: "If you compare Afghanistan with Pakistan, India, Bangladesh, Nepal, China or other countries, the prices here are the lowest." 

He added: "Fortunately, Afghanistan is not only dependent on Iran. We also import from Turkmenistan, Azerbaijan and Russia. We are working on alternative markets. If we are dependent on only one market, it can become a tactic to put pressure on us."





Post a Comment

0 Comments