Oil prices likely to drop by Rs5.49/litre from Jan 16

OMCs estimate cuts in petrol, diesel prices; OGRA to finalise recommendations as global oil prices decline

ISLAMABAD:

Consumers are likely to enjoy relief in oil prices effective from January 16, 2026. The rates of petroleum products may be reduced by up to Rs5.49 per litre for the fortnight starting January 16, following a decline in global oil prices.

The estimates are based on the current petroleum levy (PL) and customs sales levy (CSL) on petroleum products. At present, the government is charging Rs82.12 per litre (PL+CSL) on petrol and Rs77.91 per litre on high-speed diesel (HSD). According to oil marketing companies' estimates, a decrease of Rs4.59 per litre is expected in petrol prices. Another Rs2.70 per litre decline is expected in the prices of HSD. Similarly, a reduction of Rs1.82 per litre is estimated for kerosene oil, while light diesel oil (LDO) may see a cut of Rs2.08 per litre. The Oil and Gas Regulatory Authority (Ogra) and relevant ministries will work out their recommendations on January 15 and forward them to the Petroleum Division, which will announce the final prices of petroleum products on the same day, keeping in view the current fiscal year's budgeted targets for PL and CSL.

According to the estimates, the price of petrol may fall from Rs253.17 to Rs248.58 per litre, while HSD may decline from Rs257.08 to Rs254.38 per litre. Similarly, the price of kerosene oil is expected to drop from Rs170.88 to Rs169.06 per litre, and LDO from Rs146.18 to Rs144.10 per litre.