ISLAMABAD (Jan 01, 2026) – In a major relief to the public on the very first day of the new year, the federal government has announced a significant reduction in the prices of petroleum products, effective immediately.

According to the official notification issued by the Finance Division late Wednesday night, the price of petrol (Motor Spirit) has been slashed by Rs 10.28 per litre. Following this substantial reduction, the new price of petrol now stands at Rs 253.17 per litre.

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High-Speed Diesel (HSD), which is critical for the transport and agriculture sectors, also witnessed a price cut. It has been reduced by Rs 8.57 per litre, bringing the new rate to Rs 257.08.

New Fuel Rates (Effective Jan 1, 2026)

The revised prices are expected to provide immediate relief to commuters and help reduce transportation costs across the country. Below is the breakdown of the new rates:

Product Reduction (Rs) New Price (Rs/Litre)
Petrol (Motor Spirit) -10.28 253.17
High-Speed Diesel -8.57 257.08

Why Did Prices Drop?

The decision to lower fuel rates comes on the recommendation of the Oil and Gas Regulatory Authority (OGRA). Sources indicate that the primary driver for this relief is the downward trend in international crude oil prices observed over the last fortnight.

Global oil markets have seen a decline due to easing supply concerns, and the government stated its intention to pass this benefit directly to the common man to help ease inflationary pressures.

Public Reaction and Economic Impact

Citizens and transporters have widely welcomed the "New Year Gift," expressing hope that this reduction will lead to a decrease in public transport fares and the prices of essential commodities, including food items that rely on diesel-powered transport.

The new prices will remain in effect for the first fortnight of January 2026. The government will review the prices again on January 15, based on global market trends and the exchange rate of the Rupee.