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Pakistan Begins New Year with Major Fuel Price Relief

Last updated: January 1, 2026 2:54 am
Hannan Kaimkhani
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A worker holds a fuel nozzle to fills fuel in a car at a petrol station in Karachi. — Reuters/File
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Pakistan has welcomed the New Year with significant relief for the public as the federal government announced a sharp reduction in fuel prices for the next 15 days, effective from January 1, 2026.

According to the Petroleum Division, the price of petrol has been reduced by Rs10.28 per litre, bringing the new rate down to Rs253.17 per litre. The revised prices will remain in force until January 15.

The government stated that the decision was taken on the recommendations of the Oil and Gas Regulatory Authority (Ogra) after reviewing international market trends.

Meanwhile, the price of high-speed diesel has also been lowered by Rs8.57 per litre, with the new rate set at Rs257.08 per litre.

In the previous fortnight, the government had reduced diesel prices by Rs14 per litre, while petrol prices were kept unchanged.

Petrol is mainly used by motorcyclists, rickshaw drivers, and small car owners. Any reduction in its price directly benefits middle and lower-middle income groups who depend on fuel for daily commuting.

High-speed diesel, on the other hand, plays a vital role in transport and agriculture sectors. It is widely used in buses, trucks, trains, and farming machinery. A decrease in diesel prices is expected to help control inflation, especially food prices, as transport costs directly affect the prices of vegetables and other essential goods.

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