ISLAMABAD: Consumers may see some relief from mid-January as prices of key petroleum products are projected to decline from January 16, 2026, easing pressure on transport costs, household fuel expenses and industrial operations amid persistently high inflation.
According to price projections, petrol, primarily used in motorcycles, cars and other small vehicles, is expected to decline by Rs4.59 per litre, from Rs253.17 to Rs248.58 per litre. High-speed diesel (HSD), which is extensively used in public transport, freight movement, agriculture machinery, tube wells and power generation, is projected to drop by Rs2.70 per litre, from Rs257.08 to Rs254.38.
Similarly, kerosene oil, mainly consumed by low-income households for cooking and lighting in off-grid and remote areas, is projected to see a reduction of Rs1.82 per litre, bringing its price down from Rs170.88 to Rs169.06. Light diesel oil (LDO), used in small industries, boilers and backup generators, is expected to become cheaper by Rs2.08 per litre, with the price likely to fall from Rs146.18 to Rs144.10.
At the ex-refinery level, petrol price is projected to drop by Rs4.59 per litre, from Rs145.57 to Rs140.98. High-speed diesel is expected to decline by Rs2.70 per litre, from Rs155.33 to Rs152.63, while kerosene oil may fall by Rs1.82 per litre to Rs141.11. Light diesel oil is projected to decrease by Rs2.08 per litre, settling at Rs123.00.
The projections are based on prevailing local price assumptions, with Premium Motor Gasoline (PL+CL) at Rs82.12 and HSD (PL+CL) at Rs77.91. The current Inland Freight Equalization Margin (IFEM) mechanism is assumed to be Rs 8.97 per litre for petrol and Rs 7.25 per litre for diesel, while premiums stand at $5.03 per barrel for PMG and $3.20 per barrel for HSD. Platts pricing has three days remaining, indicating the final prices may still undergo minor adjustments.
If approved, the anticipated reduction would provide partial relief to consumers, lower transportation costs and help ease cost pressures on agriculture and small-scale industrial activity.
