Rising Fuel Prices Make PHEVs, REEVs the Smartest SUV Choice for Pakistan

KARACHI: With petrol prices in Pakistan staying above Rs320 per litre, the cost dynamics of operating a sport utility vehicle are increasingly tilting in favour of plug-in hybrids and range-extended electric vehicles, according to Syed Asif Ahmed, Director Sales and Marketing, Chery Master Pakistan.

Pakistan’s latest official petrol pricing data places ex-depot MS petrol at approximately Rs321 per litre, highlighting the continued exposure of daily mobility to fluctuations in imported fuel costs.

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Ahmed said the debate around new energy vehicles is no longer confined to environmental considerations alone. “For Pakistani commuters, particularly SUV users, this has become a clear economic choice,” he said. “At these fuel price levels, operating a conventional petrol SUV places significant pressure on household budgets.

PHEVs and REEVs now provide the most practical relief.” He explained that a typical petrol-powered C-segment SUV delivering about 10 kilometres per litre currently costs close to Rs32 per kilometre to operate at prevailing petrol prices.

Even a conventional hybrid, assuming fuel efficiency of around 18 kilometres per litre, still translates into nearly Rs18 per kilometre. “A hybrid improves fuel economy, but it remains exposed to petrol price volatility,” Ahmed said.

“The risk is lowered, but not eliminated.”
Ahmed noted that plug-in hybrids and REEVs alter this equation by enabling most daily urban travel to be completed using electricity rather than petrol.

Using the Chery Tiggo 9 PHEV as an example, he said the SUV is equipped with a 34.46 kWh battery and offers a claimed 170 km pure electric range under the NEDC cycle.

“At a household electricity tariff of Rs50 per unit, a full charge costs around Rs1,723,” Ahmed said. “When spread over 170 kilometres, this results in a running cost of roughly Rs10 per kilometre.” He added that this places a plug-in SUV significantly below a petrol SUV in day-to-day operating cost, with savings of about Rs22 per kilometre, and still notably lower than a conventional hybrid by nearly Rs8 per kilometre.

He added that the cost advantage becomes even stronger for urban households that have installed rooftop solar systems.

Pakistan’s rooftop solar segment has expanded rapidly, with net-metered capacity rising sharply and cumulative installations reaching several gigawatts by 2025, reflecting a growing shift among consumers toward self-generation.

“This is where Pakistan’s energy transition and mobility transition begin to converge,” Ahmed said. “A household generating its own electricity is not only lowering its power bill, but also reducing the cost of transportation.”

He said this makes PHEVs and REEVs particularly relevant for SUV buyers in Pakistan, who typically require space, versatility and long-distance capability, while facing increasing pressure from fuel expenses. Unlike a fully electric vehicle, he noted, a PHEV or REEV enables electric-focused commuting without complete reliance on a still-evolving charging infrastructure.

Ahmed also connected the discussion to the broader national economy, noting that Pakistan’s reliance on imported petroleum continues to strain foreign exchange reserves and public finances during periods of global oil market volatility.

Pakistan’s Fiscal Risk Statement has cautioned that a 20% increase in global oil prices could expand the fiscal deficit by Rs487 billion in FY2026, driven by reduced petroleum levy revenues and higher subsidy requirements.

“The argument for PHEVs and REEVs extends beyond a single brand or model,” he said. “It is about offering Pakistani consumers a viable SUV solution that lowers operating costs, limits exposure to oil price shocks and aligns with local driving needs.”

He said that with petrol prices remaining high, the market is moving toward a clear outcome: for Pakistani consumers who want to continue using SUVs without bearing the full impact of fuel inflation, plug-in hybrids and range-extended EVs are emerging as the most practical option.