People across Pakistan may receive welcome financial relief on New Year’s Day, as the federal government is considering a reduction in petroleum product prices, according to official sources.
Sources revealed that an initial working paper on petroleum pricing has been finalized, proposing a reduction of Rs10.60 per litre in petrol prices effective January 1.
High-speed diesel (HSD) is also expected to see a price cut of Rs8.59 per litre, a move likely to ease transportation costs and provide broader consumer relief.
The proposal further includes a Rs9 per litre reduction in kerosene oil prices and a Rs6.62 per litre cut in light diesel oil. These fuels are commonly used by lower-income households and in rural areas, making the potential reduction particularly significant for vulnerable communities.
Officials said the Oil and Gas Regulatory Authority (OGRA) will forward the finalized working paper to the government on Tuesday, detailing the proposed price adjustments.
On December 15, the federal government had reduced the price of high-speed diesel by Rs14 per litre while keeping petrol prices unchanged for the following 15 days. After the adjustment, the price of diesel stood at Rs265.65 per litre, down from Rs279.65, while petrol remained at Rs263.45 per litre.
Sources said the final decision on petroleum prices will depend on overall revenue considerations. The Finance Ministry is expected to review the proposal before seeking approval from the prime minister.
Once approved, the Petroleum Ministry will issue an official notification announcing the revised prices. Officials added that if the government refrains from increasing the petroleum levy or imposing additional taxes, the proposed cuts will directly translate into relief for consumers starting New Year’s Day.
