Petroleum product prices are likely to be reduced further from January 16, offering continued relief to consumers after a major cut at the beginning of the New Year. The proposed revision is subject to final approval by Prime Minister Muhammad Shehbaz Sharif.
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According to official estimates, the price of petrol may be reduced by Rs. 4.59 per litre, while high-speed diesel is expected to become cheaper by Rs. 2.70 per litre. Kerosene oil prices may fall by Rs. 1.82 per litre, and light diesel oil is likely to see a reduction of Rs. 2.08 per litre.
The expected cut follows a significant price reduction announced on January 1, 2026, when the federal government slashed petrol prices by Rs. 10.28 per litre for the first fortnight of the year. Petrol prices were brought down from Rs. 263.45 to Rs. 253.17 per litre, while high-speed diesel was reduced by Rs. 8.57 per litre to Rs. 257.08.
Officials said the latest price adjustment has been calculated after reviewing international oil market trends and domestic economic indicators. A formal notification will be issued after the prime minister’s approval.
Global oil prices have declined in recent days. On January 11, the international price of petrol dropped by $2.74 per barrel, falling from $69.27 to $66.54 per barrel, while the petrol premium also decreased by $0.13 per barrel to $5.01.
Officials attributed the decline to lower international oil prices, reduced customs duty, and exchange rate adjustments. As a result, the ex-refinery price of petrol fell by Rs. 6.51 per litre, with exchange rate adjustments contributing an additional reduction of Rs. 0.68 per litre.
