People across Pakistan may receive welcome financial relief on New Year’s Day, as the government is considering a reduction in petroleum product prices, according to official sources.

Sources say an initial working paper on petroleum prices has been finalized, proposing a Rs10.60 per litre reduction in petrol prices from January 1.

The price of high-speed diesel is also proposed to be reduced by Rs8.59 per litre, offering relief to transporters and consumers alike.

Relief expected on kerosene, light diesel

In addition to petrol and diesel, the proposal includes a Rs9 per litre cut in kerosene oil prices and a Rs6.62 per litre reduction in light diesel prices, sources in Islamabad confirmed. These products are widely used by lower-income households and in rural areas.

Officials said the Oil and Gas Regulatory Authority (OGRA) will send the finalized working paper to the government on Tuesday, outlining the proposed adjustments in petroleum prices.

Current petrol, diesel price

On Dec 15, the federal government announced a reduction in the price of high-speed diesel while keeping petrol prices unchanged for the next 15 days.

Under the revised prices, the rate of high-speed diesel (HSD) was reduced by Rs14 per litre. The new price of diesel was Rs265.65 per litre, down from the previous Rs279.65.

Also Read: Govt cuts HSD price, keeps petrol unchanged

Meanwhile, the price of petrol was maintained at Rs263.45 per litre, providing no relief or increase for consumers using motor spirit.

Petroleum Ministry to issue notification

The government will make its final decision after reviewing overall revenue requirements. Sources said the Finance Ministry will take a call on the price reductions following approval from the prime minister.

Once approved, the Petroleum Ministry will issue the final notification, formally announcing the revised prices. Officials added that if the government does not increase the petroleum levy or impose additional taxes, the proposed reductions will translate into direct relief for the public on New Year.