In a major relief for the public ahead of the New Year, petroleum product prices in Pakistan are expected to decrease by approximately Rs. 11 per liter starting January 1, 2026.
Proposed Price Reductions
According to media reports, the initial working for the next 15 days has been completed. Sources within the Ministry of Finance have suggested the following cuts.
A reduction of Rs. 10.60 per liter is proposed for petrol, and a decrease of Rs. 8.59 for High-Speed Diesel (HSD) per liter is recommended.
A cut of Rs. 9.00 per liter has been suggested for kerosene oil, while a reduction of Rs. 6.62 per liter is on the cards for Light Diesel Oil (LDO).
The Global Impact
The domestic price relief is a direct result of falling crude oil prices in the international market. Key international data includes:
Fell from $75.05 to $69.73 per barrel (a drop of $5.32) in petrol.
Dropped from $84.27 to $79.92 per barrel (a reduction of $4.35) in diesel.
The Oil and Gas Regulatory Authority (OGRA) will send the formal working paper to the government tomorrow.
The final decision will be made by the Government of Pakistan after considering revenue requirements and obtaining the Prime Minister’s approval.
The Ministry of Petroleum will issue the final notification on the night of December 31.
