The federal government is considering a significant reduction in petroleum product prices from January 1, as part of a potential New Year relief package for consumers.
According to sources within the Ministry of Finance, a cut of up to Rs. 10.60 per litre has been proposed for petrol. The move is aimed at easing inflationary pressure and providing financial relief to the public at the start of the new year.
Sources further revealed that high-speed diesel (HSD) prices may be reduced by Rs. 8.59 per litre, while kerosene oil could see a cut of Rs. 9 per litre. In addition, a reduction of Rs. 6.62 per litre has been proposed for light diesel oil (LDO).
Officials said the Oil and Gas Regulatory Authority (OGRA) will forward its working paper to the government shortly. The final decision will be taken after reviewing revenue requirements and fiscal considerations.
According to sources, the Ministry of Finance will submit its recommendations to the prime minister, and the final approval will be granted after due consultation. Once approved, the Ministry of Petroleum will issue the official notification.
Sources added that if the government decides not to impose additional levies or taxes, the proposed price cuts will translate into meaningful relief for consumers starting January 1.
The expected reduction has raised hopes of lower transportation and commodity costs, which could provide broader economic relief in the coming weeks.
