Motor Spirit (MS) petrol and High-Speed Diesel (HSD) prices are expected to decline from January 26, 2026. Petrol could fall by Rs. 9.16 per litre, while diesel may drop by Rs. 9.96 per litre. The reduction is attributed to lower international oil prices and shrinking spreads.
According to Arif Habib Limited (AHL), the decrease in ex-refinery prices may partly be used to raise Oil Marketing Companies (OMC) margins by Rs. 0.61 per litre in the next fortnight. Analysts say this adjustment ensures that companies can maintain operational costs while passing most of the price relief to consumers.
In the previous fortnight, the federal government had already announced a modest reduction. Petrol prices were lowered by Rs. 2.00 per litre to Rs. 263.45, while diesel dropped by Rs. 4.79 per litre to Rs. 279.65. This was the second minor adjustment following fluctuations in global crude oil rates.
The upcoming price reduction is expected to provide relief to consumers, who have faced rising fuel costs in recent months. Lower petrol prices could also help reduce transportation costs and overall inflationary pressure on goods and services.
Experts note that petrol and diesel prices remain sensitive to global market trends. Any significant changes in international oil rates or currency fluctuations may lead to further adjustments in domestic fuel prices. OMCs are likely to monitor these trends closely before finalizing margins.
Consumers are advised to follow official announcements, as the final prices will be confirmed by the government before implementation. The price drop is part of ongoing efforts to balance market stability, company sustainability, and public affordability.
In other related news also read Govt Increases Petrol, Diesel Prices by Rs4 per Litre
With petrol prices expected to fall sharply next month, households and businesses alike may see temporary relief in transportation and logistics costs. The government and OMCs will continue reviewing fuel prices fortnightly, based on international oil trends.
