As a net importer of petroleum fuels, and where long distances and poor transport infrastructure add to the cost of the imports, Afghanistan is vulnerable to fuel price shocks on the international market. Increases in the prices of fuel have a serious impact on households, small businesses and macroeconomic growth. In this way security of petroleum fuel supply and stability of prices ultimately have a significant impact upon livelihoods and economic growth.

At the top of the chain, the fuel market is dominated by a very small number of large players. At the opposite end of the chain, there are very large numbers of small players making very small margins. In Kabul, diesel generators are often used to produce the cities electricity at base and at peak times. In Kandahar, a very high percentage of emergency electricity is supplied this way, making it some of the most expensive electricity per kilowatt in the world.

Low-quality fuel specifications and adulteration of fuel pose serious public health risks to the Afghan population in terms of urban pollution as well as accidents. The efficiency and life span of engines is also reduced by these practices. Smuggling of fuel over the porous border with Iran is reported, where petrol and diesel are heavily subsidized and therefore have a much lower retail price than in Afghanistan. This smuggling is mostly conducted by a large number of small players, from who the fuel is then bought and mixed by wholesalers, although this practice is reported to be reducing. Routes for importing fuel into Afghanistan have been, and continue to be, tied up with Afghanistan’s geopolitics.

In Afghanistan, there has been no reported shortage of availability of fuel in the country over the last 20 years, however price increases due to the seasonality and security context have reported. Fuel is mostly imported into Afghanistan from Central Asia in the north (specifically Turkmenistan – supplies approx. 75% of total fuel imports) and Iran in the west (supplies approx. 25% of total fuel imports).

Information may also be found at the following website which is updated monthly: My Travel Cost Website

Fuel Pricing

Seasonal Variations 

Fuel Transportation

Fuel tankers are widely available both from neighbouring countries and through local transporters. Seasonal constraints related to road accessibility and storage exist as well as access concerns related to insecurity.

Standards, Quality and Testing

For information on Afghanistan fuel contact details, please see the following link:4.2.6 Afghanistan Fuel Provider Contact List.