Consumers may see meaningful relief at the start of the new year, as petroleum prices are projected to decline across the board from January 1, 2026, with petrol prices expected to fall by up to Rs10.60 per litre.
The projected revision indicates reductions in petrol, high-speed diesel, kerosene oil and light diesel oil, easing pressure on household budgets and transport costs at a time when inflation has remained a key concern.
At the ex-depot level, which determines consumer prices, petrol is projected to decline from Rs263.45 to Rs252.85 per litre, while diesel prices may fall from Rs265.65 to Rs257.06 per litre. Kerosene oil and LDO prices are also projected to drop by similar margins.
At the ex-refinery level, petrol (PMG) is projected to fall by Rs10.60 per litre, from Rs156.66 to Rs146.06. High-speed diesel (HSD), the most widely used fuel in the economy, is expected to decline by Rs8.59 per litre, from Rs164.92 to Rs156.33.
Kerosene oil prices are projected to decrease by Rs8.92 per litre, while light diesel oil (LDO) may come down by Rs6.62 per litre, reflecting a broad-based downward trend.
The anticipated cut in fuel prices is expected to provide direct relief to consumers, particularly motorists and public transport users, while also helping to ease inflationary pressures through lower freight and logistics costs.
Diesel prices are considered especially critical, as HSD is extensively used in freight transport, public buses, agricultural machinery and power generation, making it a key driver of food and commodity prices.
Petrol is mainly consumed by private vehicles and motorcycles, making it the most visible fuel for urban households. Kerosene oil is primarily used by low-income households in remote areas for cooking and lighting, while LDO is consumed by industrial units, generators and agricultural operations, particularly in areas facing electricity shortages.
If implemented, the projected price reductions would offer a positive start to 2026, providing consumer relief and cost support across key sectors of the economy. Final prices will be announced following the government’s pricing review and adjustment of applicable taxes and levies.