Govt Weighs Fuel Price Cut Amid Lower Oil Rates

The rate of petroleum products may be reduced up to Rs 5.49 per litre for fortnight starting from January 16 following declining global oil prices.

The estimates are based at current petroleum levy and CSL on petroleum products. Currently, government is charging Rs 82.12 per litre (PL+CSL) on petrol and Rs 77.91 per litre on HSD.

According to oil marketing companies’ estimates, a decrease of Rs4.59 per liter is expected in petrol prices. Another Rs2.70 decline is expected in prices of high-speed diesel (HSD). Similarly, Rs 1.82 per litre is estimated for kerosene oil, and Rs 2.08 for light diesel oil (OLD).

Oil and Gas Regulatory Authority and relevant ministries will work out their recommendations on January 15 to Petroleum Division which will announce on the same day final prices of petroleum products keeping in view the current fiscal year’ s budgeted target of PL and CSL.

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According to the estimates, the price of petrol may go down from Rs 253.17 to Rs 248.58 per litre, HSD from Rs 257.08 to Rs 254.38 per litre. Similarly, the price of kerosene oil from Rs 170.88 to Rs 169.06 per litre and LDO’s price from Rs 146.18 to Rs 144.10 per litre.

Internationally, the price of petrol has come down to $5.03 per bbl and $3.20 per bbl of HSD. In previous fortnightly review, the federal government had also announced a reduction in petroleum prices effective 1st January 2026.

High Speed Diesel (HSD) saw a decrease of Rs8.57 per litre, bringing the new price down from Rs265.65 to Rs257.08. Motor Spirit (MS), commonly known as petrol, had been reduced by Rs10.28 per litre, from Rs263.45 to Rs 253.17.