Pakistani consumers may see further relief at the fuel pump as petroleum product prices are expected to decrease again from January 16, subject to the prime minister’s approval, following a major reduction announced at the start of the New Year.

According to official estimates, petrol prices are likely to decrease by Rs4.59 per litre, while high-speed diesel (HSD) may become cheaper by Rs2.70 per litre. Kerosene oil prices are expected to fall by Rs1.82 per litre, and light diesel oil (LDO) could see a reduction of Rs2.08 per litre.

The proposed changes will take effect only after formal approval by the prime minister.

Current petrol, diesel prices

Pakistan entered 2026 with significant relief for consumers after the federal government announced a Rs10.28 per litre reduction in petrol prices for the first fortnight of the year, effective January 1, 2026.

Also Read: Petrol prices slashed by Rs10.28 per litre as Pakistan welcomes New Year with relief

Motor Spirit (petrol) prices were reduced from Rs263.45 to Rs253.17 per litre, while high-speed diesel prices were cut by Rs8.57 per litre, bringing the rate down from Rs265.65 to Rs257.08.

Global oil trends, domestic factors

The price revision was confirmed by the Ministry of Energy’s Petroleum Division in a press release issued from Islamabad. Officials said the fortnightly adjustment was made after reviewing international oil prices and domestic economic conditions.

The anticipated mid-January price cut, if approved, would further ease transportation and household fuel costs at a time when inflationary pressures remain a concern for the public.

Energy officials say fuel prices are reviewed every fortnight, and future adjustments will continue to reflect movements in global markets and fiscal considerations.

Also Read: Global petrol, diesel prices see major drop

On Jan 11, global petrol and diesel prices recorded a notable decline.

The international price of petrol fell by $2.74 per barrel, dropping from $69.27 to $66.54 per barrel. According to reports, the petrol premium also decreased by 13 cents per barrel, falling from $5.14 to $5.01. Additionally, customs duty on petrol declined by PKR 0.72 per liter, and the ex-refinery price of petrol dropped by PKR 6.51 per liter.

The exchange adjustment on petrol further reduced by PKR 0.68 per liter, bringing the ex-refinery price down from PKR 145.57 to PKR 139.06 per liter.