ISLAMABAD: Federal government has decided to keep petrol and diesel prices unchanged for the upcoming two weeks.
An official notification confirmed that the fuel prices set two weeks ago will remain in effect, with petrol continuing at Rs253.17 per liter and high-speed diesel (HSD) at Rs257.08 per liter.
The decision was made following a comprehensive review of recent petrol market trends, domestic fuel consumption, and overall market dynamics over the past fortnight. Authorities noted that careful assessment of supply, demand, and price movements influenced the choice to maintain existing rates.
These unchanged prices will be effective from January 16 and will remain in place for 15 days. Any adjustments in fuel prices will be considered during the next scheduled review cycle.Officials emphasized that Pakistan’s fuel pricing policy involves bi-weekly evaluations to strike a balance between providing relief to consumers and meeting fiscal needs.
Previous Expectations of Price Cuts
Prior to this decision, forecasts indicated that petrol and other fuel prices might decrease starting January 16. Analyses suggested a potential reduction of up to Rs4.59 per liter for petrol, with high-speed diesel expected to fall by as much as Rs2.70 per liter. Additionally, kerosene oil was projected to decrease by Rs1.82 per liter, and light diesel oil by Rs2.08 per liter.
Sources indicated that preparations for a possible downward revision of petroleum prices had already been completed, pending official approval.
Petroleum Levy Collection Plan Submitted to IMF for Five Years
On December 18, 2025, Pakistan submitted a five-year projection plan for petroleum development levies to the International Monetary Fund (IMF). The plan includes an increase of Rs2.5 per liter in the climate support levy starting July 1, 2026.
The IMF report details year-by-year estimates for petroleum levy collections. For the current fiscal year, revenue from levies is projected at Rs1,468 billion, rising to Rs1,638 billion in 2026-27, Rs1,787 billion in 2027-28, Rs1,989 billion in 2028-29, and Rs2,212 billion in 2029-30.
Historical data shows that levy collections totaled Rs1,220 billion in the previous fiscal year, Rs1,019 billion in 2023-24, and Rs580 billion in 2022-23. Currently, the levy on petrol stands at Rs79.62 per liter, while high-speed diesel carries a levy of Rs75.41 per liter. The Rs2.5 climate support levy is applied separately to both fuel types.
