Govt cuts petrol price by over Rs10 per litre ahead of New Year

Islamabad: Pakistan welcomed the New Year with significant relief for consumers as the federal government on Wednesday announced a reduction of more than Rs10 per litre in the price of petrol for the next fortnight, effective January 1, 2026.

According to a statement issued by the Petroleum Division, the price of petrol has been slashed by Rs10.28 per litre and fixed at Rs253.17 per litre until January 15. The decision was taken in line with recommendations submitted by the Oil and Gas Regulatory Authority to the federal government.

The price of high-speed diesel has also been reduced by Rs8.57 per litre, bringing the new rate down to Rs257.08 per litre. In the previous fortnightly review, the government had reduced diesel prices by Rs14 per litre while keeping petrol prices unchanged.

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Petrol is widely used by commuters travelling in small vehicles, motorcycles and rickshaws, and fluctuations in its price have a direct impact on the daily budgets of middle and lower-middle income households.

High-speed diesel, on the other hand, is a key fuel for the transport and agricultural sectors, including trucks, buses, trains, tractors and tube wells. Its price is considered highly inflationary, as changes in diesel rates significantly influence the cost of transporting goods, particularly vegetables and other essential food items.