ISL AMABAD: Petrol and diesel prices have been reduced significantly by Rs10.28 and Rs8.57 per litre, respectively, for the first fortnight of 2026.

Based on the recommendations by the Oil and Gas Regulatory Authority (Ogra), the government announced that the new price of petrol will be Rs253.17 per litre from January 1 to 15. The decrease will help the individual travellers during the ongoing holidays, mainly in Punjab where the CNG fuel is very limited.

The price of per litre high-speed diesel will be Rs257.08 for this period. High-speed diesel is mainly used in the heavy transport sector and large generators. However, the government is currently charging around Rs80 per litre petroleum levy and carbon tax on these fuels.

The price reduction comes as the prices in the international market have dropped significantly to almost a four-year low in December 2025 amid talks of peace in Ukraine.

The prices of other deregulated petroleum fuels, including the kerosene oil, light diesel oil (LDO) and the jet fuels, used by the aviation industry, air force and helicopters, have also been reduced.

On the other hand, Ogra has notified an increase in Liquefied Petroleum Gas (LPG) prices for January 2026. According to the official notification issued by Ogra, the maximum LPG consumer price for January 2026 has been fixed at Rs219,677.51 per tonne, translating into Rs2,592.19 per 11.8 kg domestic cylinder.

This reflects an increase of Rs10,686.11 per tonne compared to December 2025, when the consumer price stood at Rs208,991.40 per tonne. Ogra stated that LPG prices are linked with Saudi Aramco Contract Prices (CP) and the US dollar exchange rate.

During January, the Saudi Aramco CP increased by 6.74 per cent compared to the previous month.

Although the average exchange rate of the US dollar de clined slightly by 0.14 per cent, the impact of the higher CP outweighed the marginal currency relief.

As a result, the consumer LPG price has been increased by Rs10.68 per kg. At the same time, Ogra asked the consumers to report overcharging and irregular practices to ensure compliance across the LPG supply chain.