Pakistan will usher in the New Year with significant relief for consumers as the federal government has announced a sharp reduction in petroleum prices for the next fortnight, effective January 1, 2026.
The move comes as part of the government’s regular fuel price review and is expected to ease inflationary pressure on households and transport-dependent sectors.
According to a statement issued by the Petroleum Division, the price of petrol has been reduced by more than Rs10 per litre. The new price has been fixed at Rs253.17 per litre, reflecting a cut of Rs10.28 per litre, and will remain in effect until January 15.
The decision was taken following recommendations submitted by the Oil and Gas Regulatory Authority (OGRA) to the federal government.
In addition to petrol, the price of high-speed diesel has also been lowered. Diesel will now be available at Rs257.08 per litre after a reduction of Rs8.57 per litre.
High-speed diesel is widely used in the transport, agriculture, and industrial sectors, and the price cut is expected to bring relief to businesses and help lower transportation costs.
The latest reduction follows the previous fortnightly review, during which the government had reduced the price of diesel by Rs14 per litre while keeping petrol prices unchanged.
Officials said fuel prices are reviewed every two weeks in line with fluctuations in international oil prices and exchange rate movements.
Analysts believe the latest cut may provide some respite to consumers amid ongoing economic challenges and rising living costs. Lower fuel prices are also expected to have a positive impact on inflation, as transportation costs influence the prices of essential goods and services.
The government has reiterated its commitment to passing on the benefit of lower international oil prices to consumers whenever possible, while maintaining fiscal discipline.
Citizens are hopeful that the reduction in fuel prices at the start of the New Year will contribute to improved economic sentiment and offer temporary relief to households and businesses alike.
