Islamabad, December 31, 2025 — Pakistan is set to welcome the New Year with significant relief for motorists and households as the federal government announced a sharp reduction in petroleum prices for the next fortnight, effective from January 1, 2026.
According to an official statement issued by the Petroleum Division, the price of petrol has been reduced by Rs10.28 per litre, bringing the new rate down to Rs253.17 per litre. The revised prices will remain in force until January 15, 2026, offering temporary relief to consumers grappling with rising living costs and inflationary pressures.
The Petroleum Division stated that the decision was taken on the basis of recommendations submitted by the Oil and Gas Regulatory Authority (OGRA), which periodically reviews international oil prices, exchange rate movements and domestic tax adjustments before advising the federal government on fuel pricing.
In addition to petrol, the government has also lowered the price of high-speed diesel (HSD), a fuel widely used in transport, agriculture and industrial activities. The price of high-speed diesel has been cut by Rs8.57 per litre, setting the new rate at Rs257.08 per litre for the same fortnightly period.
Fuel price adjustments are made every 15 days in Pakistan in line with fluctuations in global oil markets and changes in the rupee-dollar parity. In the previous fortnightly review, the government had reduced the price of high-speed diesel by Rs14 per litre, while keeping petrol prices unchanged.
Analysts believe the latest reduction in petrol and diesel prices could help ease transportation costs and provide short-term relief to consumers and businesses, particularly as economic activity picks up in the New Year. The move is also expected to have a positive impact on inflation-sensitive sectors across the economy.