The government on Wednesday slashed price of petrol by Rs 10.28 per litre as a new year gift in line with fluctuation in global oil prices effective from January 1,2026.
It has also reduced the price of high speed diesel by Rs 8.57 per litre.
After fresh reduction, the petrol will be sold now at new rate of Rs 257.17 per litre against old price of Rs 263.45 per litre registering a reduction of Rs 10.28 per litre.
The high speed diesel will be available now at Rs 257.08 against old price of Rs 265.65 per liter witnessing a decline of Rs 8.57 per litre.Petrol is used in motorbikes and cars and recent reduction is considered to be a gift for new year.
The petrol demand had increased mainly in Punjab province due to ban of indigenous gas in CNG retail outlets.High speed diesel is mainly used in transport and agriculture sectors.The reduction in it’s price will also lead to reduction in inflation.
The petroleum division said that government had revised the prices of petroleum products following recommendations of oil and gas regulatory authority (Ogra).
It said that new prices will remain in effect from January 1 to January 15.The government is currently charging higher rate of petroleum levy and carbon tax that amount over Rs 80 per litre.
Increase in LPG Prices
The Oil and Gas Regulatory Authority (OGRA) has notified an increase in Liquefied Petroleum Gas (LPG) prices for the month of January 2026.It raiser the cost of an 11.8 kg domestic cylinder by Rs126.09, effective from January 1.
According to the official notification issued by OGRA, the maximum LPG consumer price for January 2026 has been fixed at Rs219,677.51 per ton, translating into Rs2,592.19 per 11.8 kg cylinder. This reflects an increase of Rs10,686.11 per ton compared to December 2025, when the consumer price stood at Rs208,991.40 per ton or Rs2,466.10 per cylinder.
Similarly, OGRA has notified an increase in LPG producer prices, which have been set at Rs178,377.51 per ton or Rs2,104.85 per 11.8 kg cylinder for January 2026. In December 2025, the producer price was Rs167,691.40 per ton or Rs1,978.76 per cylinder, indicating the same upward adjustment of Rs10,686.11 per ton.
OGRA stated that LPG prices are linked with Saudi Aramco Contract Prices (CP) and the US dollar exchange rate. During January, the Saudi Aramco CP increased by 6.74 percent compared to the previous month. Although the average exchange rate of the US dollar declined slightly by 0.14 percent, the impact of the higher CP outweighed the marginal currency relief.
As a result, the consumer LPG price increased by Rs126.09 per 11.8 kg cylinder, representing a 5.11 percent rise on a monthly basis. On a per-kilogram basis, the LPG consumer price has increased by Rs10.68.OGRA clarified that the notified prices represent the maximum allowed rates, and any violation of these prices would be dealt with in accordance with the applicable laws and regulations.
The authority also advised consumers to report overcharging and irregular practices to ensure compliance across the LPG supply chain.
