ISLAMABAD – Pakistani government announced that it will keep Petrol and Diesel prices unchanged for second half of January 2026 amid global uncertainty.
According to an official notification issued by Fthe inance Division, the government has decided to maintain existing rates for all petroleum products from January 16, 2026.
As per the announcement, the price of high-speed diesel (HSD) will remain at 257.08 per litre, while petrol will continue to sell at 253.17.
Hopes of cut in petrol and diesel prices for second half of January 2026 were dashed this weekend as federal government decided to maintain existing fuel rates, despite widespread expectations of a cut driven by recent global oil market trends.
Consumers had been anticipating relief as fuel prices are reviewed every fifteen days, and expectations were especially high this time after petrol prices already dropped by Rs12 per litre over the past two months.
Market speculation had pointed toward further Rs4–5 per litre reduction, which would have brought petrol prices down to around Rs248 per litre, marking the first time since November 2024 that rates fell below the Rs250 threshold. However, the anticipated relief did not come.
In the previous fortnightly review, the government had reduced petrol prices by Rs10 per litre when international crude oil prices stood at approximately $60 per barrel. Since then, global crude prices have climbed to nearly $63 per barrel, while the US dollar has strengthened from Rs278 to Rs280, factors that analysts say limited the government’s room to cut prices further.
Energy experts had already cautioned that a sharp reduction was unlikely, given the close link between domestic fuel pricing, international oil rates, and currency movements. Pakistan’s petrol prices have fluctuated sharply in recent years. The record high of Rs331 per litre was reached in September 2023, before gradually easing to Rs247 per litre by September 2024. In 2025, prices peaked at Rs272 per litre in July and fell to a low of Rs252 in May. Petrol currently stands at Rs253 per litre.
Adding pressure to prices are substantial government levies. Under an agreement with the International Monetary Fund, the government has committed to gradually raising the petroleum levy to Rs100 per litre in the next fiscal year. At present, petrol prices already include Rs78.02 per litre as petroleum levy, Rs2.50 as climate support levy, and Rs14.37 per litre in customs duty.
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