Pakistan will welcome the New Year with a major relief for consumers, as the federal government announced a more than Rs10 per litre cut in the price of petrol for the next fortnight, effective January 1, 2026.

In a statement, the Petroleum Division said that the new price of petrol has been set at 253.17 per litre — till January 15 — after a cut of Rs10.28 per litre.

The Petroleum Division mentioned that the decision was taken on the basis of the Oil and Gas Regulatory Authority’s recommendations to the federal government.

Meanwhile, the price of high-speed diesel has been reduced to Rs257.08 per litre after a Rs8.57 per litre cut.

In the previous fortnight review, the government had slashed the rate of diesel by Rs14 per litre and kept the price of petrol unchanged.

Petrol is mainly used by commuters in small vehicles, rickshaws and two-wheelers. Higher fuel prices significantly impact the budgets of middle and lower-middle class households, who rely on petrol for daily travel.

On the other hand, a significant portion of the transport sector relies on high-speed diesel.

Its price is considered inflationary since it is predominantly used in heavy goods transport vehicles, trucks, buses, trains, and agricultural machinery such as tractors, tube wells, and threshers.

The consumption of high-speed diesel particularly contributes to the increased prices of vegetables and other food items.