Pakistan is likely to ring in the New Year with significant relief at the fuel pumps, as the government plans to implement a sharp reduction in petroleum prices from January 1.
Sources in the Ministry of Finance say petrol prices could fall by up to Rs10.60 per litre. Officials have already prepared a proposal recommending a reduction to ease inflationary pressures on households and businesses.
The proposal also suggests cuts across other fuel categories. High-speed diesel prices may decline by Rs8.59 per litre, while kerosene oil could become cheaper by Rs9 per litre. Light diesel prices are also expected to drop by Rs 6.62 per litre.
Read: Pakistan Shares Five-Year Petroleum Levy Projections With IMF
The Oil and Gas Regulatory Authority will forward its working paper to the federal government shortly. Authorities will then review the figures before sending them for final approval.
Officials say the Prime Minister will make the final decision on the revised fuel prices after reviewing the summary. If approved, the new rates will take effect from January 1, offering consumers a welcome start to the New Year.
The expected cuts reflect recent movements in international oil prices and exchange-rate stability, which have created room for downward adjustments in domestic fuel costs.
