KARACHI – Slight relief for commuters as Pakistani government plans cutting Petrol and Diesel prices for second half of Janaury 2026 amid changes in global oil rates.
Sharif led government prepares to announce new rates. Every 15 days, consumers anxiously wait to see whether petrol prices will rise or fall, and this time the anticipation is higher than ever. Over past 2months, petrol prices have already moved down by Rs12 per liter. Sources now suggest further reduction of Rs4-5 per liter, which could bring the price down to 248 rupees per liter. If this happens, it will be the first time since November 2024 that petrol is priced below Rs250 per liter.
In previous fortnight review, the government slashed petrol prices by Rs10 per liter when crude oil in the global market was $60 per barrel. Today, global crude prices have risen to $63 per barrel. Similarly, US dollar has strengthened slightly from 278 to 280 rupees.
Since petrol prices are determined based on global crude oil rates and the dollar exchange rate, analysts believe that the likelihood of a 4–5 drop is slim. It is more likely that prices will see a modest increase or remain unchanged. The final decision will be taken by the Ministry of Finance before midnight tonight, following OGRA’s recommendation.
Petrol prices in Pakistan have seen extreme fluctuations. The highest ever price was recorded in September 2023 at Rs331 rupees per liter. Prices then gradually decreased, reaching 247 rupees per liter in September 2024. In 2025, the highest price was 272 in July, and the lowest was 252 in May. Currently, petrol stands at 253 rupees per liter.
Adding another layer to the pricing puzzle, prior to the recent budget, the government agreed with the IMF to gradually raise the petroleum levy to 100 rupees per liter in the next fiscal year.
Although full levy has not been applied yet, the current petrol price includes 78.02 rupees per liter as petroleum levy. Rs2.50 as climate support levy, and Rs14.37 as customs duty.
These charges are being collected from consumers with every liter of petrol, keeping the final price high despite recent reductions in global crude oil costs.
With millions watching closely, tonight’s announcement could mark a historic moment in Pakistan’s petrol pricing, potentially giving relief to ordinary consumers while highlighting the continuing tension between global oil trends, the dollar, and government levies.
