Petrol average isnt everything, a good 660 cost btwn 850-1250 in the market. on average a good 660cc costs around 9-10 lack rupees.
The cars got a boom after alto and Coure were shut down because the gap btwn Mehran and Cultus was 3 lack rupees,
Coming to City bhee itna average deti hai, If your talking about a 2007-8 City, a Pakistani driven 8 year old car is no where comparable even to a 15 year old Japanese driven car. If your talking about a new City which costs around 15 Manual and 1625 AT so the price difference is 6-7 Lack rupees.
Althou WagonR has filled the gap btwn Mehran and Cultus but some people dont like its shape.
Another major reason for 660cc hatch back car sales is that for some people a tiny dinky is a requirment, Office parking, WIfes, Daughters are more comfortable driving small cars in daily routine.