By Petrol prices in Pakistan are expected to decline from January 1, 2026, offering much-needed relief to consumers struggling with rising fuel costs and inflation. According to local media reports, the federal government is considering a significant reduction in fuel prices for the upcoming fortnight, following calculations prepared by the Oil and Gas Regulatory Authority (OGRA).
Expected Petrol and Diesel Price Cut
As per the reported estimates, petrol prices may be reduced by Rs 10.60 per litre, bringing the price down from the current Rs 263.09 to approximately Rs 252.85 per litre. If approved, this would mark one of the notable price cuts in recent months.
In addition to petrol, the price of high-speed diesel (HSD) is also expected to decrease by Rs 8.59 per litre. This would lower diesel prices from Rs 267.80 to around Rs 259.21 per litre, providing relief to the transport and agricultural sectors, which heavily rely on diesel fuel.
Reduction Expected in Other Fuel Prices
The report further suggests that light diesel oil (LDO) prices may fall by Rs 6.62 per litre, while kerosene oil could see a reduction of Rs 8.92 per litre. Any decrease in kerosene prices would be particularly beneficial for households in remote and colder regions where it is commonly used for heating and cooking.
OGRA’s Role in Fuel Pricing
These anticipated reductions are based on pricing calculations finalized by OGRA, which reviews international oil prices, exchange rate movements, and other economic factors. According to sources, OGRA is expected to forward its fuel price summary to the Petroleum Division on December 31.
Once the summary is received, the Petroleum Division will seek final approval from Prime Minister Shehbaz Sharif. After approval, the revised fuel prices will be officially notified and implemented nationwide for the next fifteen-day pricing cycle starting January 1, 2026.
Previous Fortnight Fuel Prices
In the previous pricing review, the federal government kept petrol prices unchanged at Rs 263.45 per litre. However, during the same period, high-speed diesel prices were reduced by Rs 14 per litre, bringing diesel down to Rs 265.65 per litre.
Fuel Price Review Mechanism in Pakistan
Fuel prices in Pakistan are reviewed every fifteen days, based on fluctuations in global oil markets and changes in the exchange rate. Any variation in international crude prices or currency valuation directly impacts domestic fuel pricing.
If approved, the expected reduction in petrol prices in Pakistan in January 2026 could provide short-term economic relief and help ease transportation and living costs across the country.
