Will petrol and diesel prices drop in Pakistan from January 2026?

ISLAMABAD: The federal government will announce the new petrol prices in Pakistan on December 31 for the month of January 2026, with consumers expecting a big cut as the New Year approaches.

The Oil and Gas Regulatory Authority (OGRA) sends a summary to the government, recommending changes in petroleum prices based on trends in the international market.

In December 2025, global oil prices dropped significantly. Brent crude futures and US West Texas Intermediate crude both fell over 2% on Friday, driven by a global supply surplus and hopes for a peace deal in Ukraine.

During the previous fortnightly review on December 15, the ex-refinery petrol price in Pakistan was Rs145.66 per litre, down from Rs156.11, a decrease of Rs11 per litre. The ex-refinery price of high-speed diesel also dropped to Rs155.35 per litre from Rs166.92, marking a decrease of Rs9.57 per litre.

For the upcoming January 2026 review, petrol and diesel prices are expected to drop again. If the calculations are implemented, petrol may fall by Rs11 per litre and diesel by Rs9.57 per litre. The government will make the final decision after reviewing OGRA’s proposals.

Currently, the retail petrol price in Pakistan is Rs263.45 per litre, while high-speed diesel is priced at Rs265.65 per litre, valid until December 31, 2025.

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