Petrol price likely to decrease in Pakistan from New Year’s Day as the Oil and Gas Regulatory Authority (OGRA) has forwarded recommendations for significant reductions, offering relief to motorists and households facing rising fuel costs.
According to government sources, petrol may be cheaper by up to Rs10.60 per litre, with the tentative ex-depot price falling from around Rs263.45 to approximately Rs252.85 from January 1, 2026, subject to final approval by the federal cabinet. High-speed diesel, kerosene oil, and light diesel oil are also expected to see notable price cuts.
The reduction would come after routine fortnightly price reviews that take into account international crude oil rates, global supply dynamics, and exchange rate movements, factors that have recently softened, enabling potential cuts in petroleum product prices
Industry analysts note that this relief coincides with broader market signals of easing commodity costs. For example, gold prices in Pakistan recently hit record highs, reflecting shifting investor interest during market volatility and consumer searches for alternative assets as fuel and inflation concerns rise.
Petrol price fluctuations directly impact inflation and transportation costs across Pakistan, especially for urban commuters and logistics operators. A price cut ahead of the New Year could ease mounting pressure on household budgets and businesses that rely heavily on fuel. The potential Rs10 + per litre reduction is one of the largest anticipated declines in petrol costs in recent review cycles.
Officials say the final announcement will be made after OGRA’s recommendations are officially notified and taxes and levies are adjusted, making the petrol price decrease in Pakistan a closely watched economic update as the country enters 2026.
