Petrol Price Expected to Drop Again This Week

Petroleum product prices are expected to be reduced again from January 16, extending relief to consumers following a major cut at the start of the New Year.

The revision will be subject to final approval by Prime Minister Muhammad Shehbaz Sharif.

According to official estimates, petrol prices may be lowered by Rs. 4.59 per litre, while high-speed diesel is expected to decline by Rs. 2.70 per litre. Prices of kerosene oil may fall by Rs. 1.82 per litre, and light diesel oil could see a reduction of Rs. 2.08 per litre, officials said.

The proposed reduction follows a significant cut announced on January 1, 2026, when the federal government slashed petrol prices by Rs. 10.28 per litre for the first fortnight of the year. Petrol prices were reduced from Rs. 263.45 to Rs. 253.17 per litre, while high speed diesel prices were cut by Rs. 8.57 per litre to Rs. 257.08.

Officials said the latest price revision has been worked out after reviewing international oil market trends and domestic economic indicators. A formal notification will be issued only after approval from the prime minister.

Global oil prices have shown a downward trend in recent days. On January 11, the international price of petrol fell by $2.74 per barrel, declining from $69.27 to $66.54 per barrel. The petrol premium also dropped by $0.13 per barrel to $5.01.

Officials said lower international prices, along with reduced customs duty and exchange rate adjustments, contributed to a decline in ex-refinery prices. The ex-refinery price of petrol dropped by Rs. 6.51 per litre, while exchange adjustments further reduced the price by Rs. 0.68 per litre.