Government cites global oil trends and domestic economic factors

Pakistan has entered the New Year with notable economic relief for consumers as the federal government announced a significant reduction in fuel prices for the upcoming fortnight, effective from January 1, 2026.

Revised Fuel Prices Announced

According to an official notification issued by the Ministry of Energy’s Petroleum Division, petrol prices have been reduced by Rs10.28 per litre, bringing the rate down from Rs263.45 to Rs253.17.

Meanwhile, the price of High-Speed Diesel (HSD) has been cut by Rs8.57 per litre, lowering it from Rs265.65 to Rs257.08.

Reason Behind the Price Cut

The Petroleum Division stated that the revised prices were determined after a comprehensive review of international oil market trends and domestic economic indicators. The government follows a fortnightly pricing mechanism to adjust fuel rates in line with global fluctuations.

Economic Impact and Public Relief

The reduction is expected to provide immediate relief to motorists, transporters, and fuel-dependent sectors. Analysts suggest that lower fuel prices could help ease transportation costs, which may eventually translate into reduced prices of essential goods and services.

Economists further believe the move could play a role in moderating inflationary pressures, particularly in the transport and logistics sectors, offering some breathing space to households amid ongoing economic challenges.