Welcoming the New Year with much-needed relief for consumers, the federal government has announced a reduction in petroleum prices for the next fortnight, effective from January 1, 2026.

According to a notification issued by the Petroleum Division, the price of petrol has been slashed by Rs10.28 per litre, bringing the new ex-depot rate down to Rs253.17 per litre, applicable until January 15. High-speed diesel (HSD) prices have also been reduced by Rs8.57 per litre to Rs257.08 per litre.

The price revision follows recommendations from the Oil and Gas Regulatory Authority (OGRA) and reflects recent trends in international oil prices. In the previous fortnightly review, the government had reduced diesel prices by Rs14 per litre, while petrol prices were kept unchanged.

Petrol, which is widely used by motorcycles, rickshaws and small private vehicles, has a direct impact on the daily expenses of middle- and lower-middle-income households. Any reduction in its price provides immediate relief to urban commuters and salaried segments.

High-speed diesel, on the other hand, plays a critical role in Pakistan’s transport and agricultural sectors. It is extensively used in trucks, buses, trains, tractors, tube-wells and other farm machinery, making its price a key driver of inflation and overall economic activity. The latest cut in HSD prices is expected to help ease transportation costs and provide indirect relief across multiple sectors of the economy.