By SKM
January 13, 2026
ISLAMABAD: The federal government is likely to announce a reduction of up to Rs4.59 per liter in petroleum product prices from January 16, offering potential relief to consumers amid easing global oil prices.
According to the working compiled by government and industry sources, the price of petrol is expected to fall by Rs4.59 per litre, while high-speed diesel (HSD) may see a cut of Rs2.70 per litre. Kerosene prices are likely to drop by Rs1.82, and light diesel oil (LDO) by Rs2.08 per litre for the next fortnight.
The anticipated price cut follows a downward trend in international oil markets, driven by shifting geopolitical dynamics, supply-side adjustments, and softer global demand. Market sources say increased US influence over Venezuelan crude flows has added to supply expectations, exerting pressure on prices, though uncertainty continues to cause short-term volatility.
Global oil market analysts expect prices to remain under pressure throughout 2026, following a sharp decline of nearly 20 percent in 2025. Brent crude is projected to average below $60 per barrel, while West Texas Intermediate (WTI) is forecast near $50 per barrel, with room for further downside if demand weakens.
Based on current estimates, the ex-depot price of petrol may settle at Rs248.58 per litre, HSD at Rs254.38, kerosene at Rs169.06, and LDO at Rs144.10 per litre.
Despite the expected reduction, fuel prices remain heavily burdened by taxes and levies. Consumers currently pay Rs82.12 per litre on petrol under Petroleum and Carbon Levies, while HSD carries Rs77.91 per litre in the same charges. Additionally, an Inland Freight Equalization Margin (IFEM) of Rs8.97 per litre on petrol and Rs7.25 per litre on HSD is being imposed.
Industry data show that the premium on petrol stands at $5.03 per barrel, while HSD carries a premium of $3.20 per barrel, limiting the full impact of falling international prices on domestic consumers.—Ends—
