Petrol Price Likely to Decrease in Pakistan on New Year’s Eve

Petrol Price Likely to Decrease in Pakistan on New Year’s Eve

Petrol price in Pakistan is likely to decrease ahead of the new year, with a reduction of Rs10.60 per litre expected for the next fortnight starting January 1, 2026, according to sources cited by ARY News.

Sources said the price of high-speed diesel (HSD) may also be reduced by Rs8.59 per litre, while light diesel oil (LDO) is expected to see a cut of Rs6.62 per litre. Kerosene oil prices could drop by Rs8.92 per litre.

Following the proposed adjustment, the price of petrol is expected to fall from Rs263.09 per litre to Rs252.85 per litre, while high-speed diesel may decline from Rs267.80 to Rs259.21 per litre.

Officials said the Oil and Gas Regulatory Authority (OGRA) is set to forward its pricing recommendations to the Petroleum Division on December 31. After approval from Prime Minister Shehbaz Sharif, the revised petroleum prices will be formally announced.

In the previous fortnight, the federal government kept petrol prices unchanged at Rs263.45 per litre, while reducing high-speed diesel prices by Rs14 to Rs265.65 per litre, offering partial relief to consumers amid inflationary pressures.

Sources indicated that the anticipated cut would mark another downward adjustment in fuel prices, potentially easing transportation and living costs at the start of the new year.

Meanwhile, Pakistan has submitted projections of petroleum development levy collections for the next five years to the International Monetary Fund (IMF). According to the documents, petroleum levy collections are projected at Rs1,468 billion for the current fiscal year, rising to Rs1,638 billion in the next fiscal year.

Estimates further show collections of Rs1,787 billion in FY 2027-28, Rs1,989 billion in FY 2028-29, and Rs2,212 billion in FY 2029-30. The report also notes that a climate support levy is expected to increase by Rs2.5 per litre from July 1, 2026.