The federal government of Pakistan has decided to maintain the current prices of major petroleum products unchanged for the second fortnight of January 2026, effective from January 16, 2026.
This announcement came via an official notification from the Ministry of Energy (Petroleum Division) and the Finance Division on January 15, 2026, dashing earlier expectations of a potential reduction of up to Rs5-6 per litre due to softening global crude oil prices.
Motor Spirit (petrol) will continue to sell at Rs253.17 per litre, while High-Speed Diesel (HSD) remains at Rs257.08 per litre.
The decision reflects a balance between global market volatility, rupee-dollar exchange rate stability, and the government’s ongoing efforts to curb inflationary pressures on the economy and consumers.
Reasons Behind the Stability Decision
The primary factors influencing this hold include fluctuating international crude oil rates, which hovered around USD 60 per barrel recently, and domestic considerations such as high petroleum levies (Rs82.12 per litre on petrol and Rs77.91 on HSD, including the Climate Support Levy).
Although global trends had hinted at possible cuts following reductions in the first half of January (petrol down Rs10.28 and diesel down Rs8.57), the government opted for stability to avoid revenue shortfalls and provide predictability for transport, agriculture, and industry sectors heavily reliant on fuel.
Implications for Consumers and Economy
This price freeze offers short-term relief by preventing any immediate hike in transportation and commodity costs, especially as diesel influences food supply chains and public transport fares.
However, with persistent high levies contributing significantly to pump prices, many consumers expressed disappointment over missed opportunities for further reductions amid lower global oil benchmarks.
Analysts note that fortnightly reviews will continue, with potential adjustments in the next cycle depending on crude trends and exchange rates.
The move underscores the government’s cautious approach to fiscal management while navigating external volatilities.