As the year draws to a close, many Pakistanis are watching petrol prices with quiet hope. After months of stretching household budgets to cover fuel costs, even a modest cut would come as a relief for drivers heading into 2026.
Fresh indications suggest that petrol and diesel prices could fall for the first half of January 2026. The government is expected to announce the new rates tonight after 9 PM. The prices will take effect from midnight on January 1 and stay in place for the next fortnight.
Petrol price in Pakistan right now
For now, fuel remains expensive across major cities such as Lahore, Karachi and Islamabad. Regular petrol is selling at around Rs264.7 per litre, while high-octane petrol stands at Rs278.95 per litre.
Looking back shows why many people feel the strain. On January 1, 2025, regular petrol cost Rs252.66 per litre, and high-speed diesel was priced at Rs258.34 per litre. In simple terms, petrol today costs more than Rs12 per litre extra compared to a year ago.
On paper, the increase over 12 months may appear limited. For families and commuters, however, fuel was already costly at the start of 2025. Since then, transport expenses have continued to eat into monthly incomes, especially for those who rely on cars or motorbikes for daily travel.
Petrol price in Pakistan from January 1, 2026
Recent reports suggest some relief may finally be on the way. Petrol prices are expected to fall by Rs10.60 per litre for the next fortnight, starting January 1, 2026.
Sources say high-speed diesel could also become cheaper by Rs8.59 per litre. Light diesel oil is expected to drop by Rs6.62 per litre, while kerosene oil may see a reduction of Rs8.92 per litre.
If approved, petrol prices would fall from around Rs263.09 to Rs252.85 per litre. High-speed diesel could drop from Rs267.80 to Rs259.21 per litre.
This would mark a clear change from the previous review, when the government left petrol prices unchanged at Rs263.45 per litre but cut high-speed diesel prices by Rs14 to Rs265.65 per litre.
How the final call is taken
Officials say the Oil and Gas Regulatory Authority will send its price recommendations to the Petroleum Division on December 31. After approval from Prime Minister Shehbaz Sharif, the Petroleum Division will issue the official notification later tonight.
With diesel prices already reduced in the last fortnight, many believe petrol could follow the same path this time, offering a slightly softer start to the new year.
IMF plans and what lies ahead
Beyond this fortnight, fuel prices remain linked to wider fiscal commitments. Pakistan has shared its projections for petroleum development levy collections over the next five years with the International Monetary Fund.
According to these documents, a climate support levy will rise by Rs2.5 per litre from July 1, 2026. The IMF report also outlines yearly estimates for petroleum levy collections, starting at Rs1,468 billion for the current fiscal year and rising steadily in the years that follow.
For now, these figures remain projections. The immediate focus stays on tonight’s announcement, which will decide whether fuel prices do come down as Pakistan steps into 2026.
Read next: Hi octane price in Pakistan: how it benefits your car’s engine
