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Aftab Maken
ISLAMABAD: Pakistani consumers may soon enjoy additional relief at the pumps as petroleum product prices are poised for another reduction starting January 16, 2026. This follows a significant cut implemented at the beginning of the year, driven by declining global crude oil prices and a relatively stable Pakistani rupee.
According to reliable sources, the Oil and Gas Regulatory Authority (OGRA) has completed its fortnightly review of international oil benchmarks and exchange rate factors. The authority is expected to submit its final recommendations to the Petroleum Division as early as January 14 or 15, 2026. The Ministry of Petroleum, in consultation with the Prime Minister, will then finalize any adjustments, with a notification to be issued shortly thereafter.
Key proposed reductions include:
- Petrol (Motor Spirit): Up to Rs4.59 per litre
- High-Speed Diesel (HSD): Up to Rs2.70 per litre
- Kerosene Oil: Up to Rs1.82 per litre
- Light Diesel Oil: Up to Rs2.08 per litre
These figures align closely with ongoing trends in the global market, where Brent crude has hovered around $63-64 per barrel and WTI near $59-60 per barrel in mid-January 2026, reflecting softer demand and supply dynamics despite occasional geopolitical tensions.
This potential cut comes on the heels of a substantial New Year relief package. Effective January 1 to January 15, 2026, the government slashed petrol prices by Rs10.28 per litre to Rs 253.17 and high-speed diesel by Rs 8.57 per litre to Rs 257.08. That adjustment was based on OGRA’s prior recommendations and provided immediate respite amid persistent inflation pressures.
Experts attribute the downward trajectory to sustained declines in crude oil prices throughout late 2025 and early 2026, coupled with the Pakistani rupee maintaining relative stability against the US dollar. Lower fuel costs directly benefit multiple sectors: transportation operators could reduce fares, households using kerosene for cooking would see savings, and industries reliant on diesel for machinery or power generation might experience lower operational expenses.
A continued reduction in fuel prices could play a supportive role in curbing inflation, which has been a major challenge for Pakistan’s economy. Cheaper transport fuels often translate into moderated prices for essential goods, including food items transported across the country. This is particularly welcome for middle- and lower-income households, where fuel constitutes a significant portion of monthly budgets.
However, the final decision rests with the government, which must balance consumer relief against fiscal considerations such as revenue from the petroleum levy and other taxes. Pakistan’s fortnightly pricing mechanism allows for swift adjustments to international fluctuations, but external factors like OPEC+ decisions, geopolitical risks, or currency movements could alter the outlook.
As of now, the current prices (valid until January 15) stand at Rs 253.17 for petrol and Rs 257.08 for high-speed diesel. Any approved changes for the second half of January would take effect from January 16 and remain in place for the following fortnight.
Consumers and businesses are advised to monitor official announcements from the Petroleum Division or OGRA for confirmation. While the prospects appear positive, the ultimate outcome depends on the government’s final approval in the coming days.
