Fuel Price Cut Expected: Petrol Prices Likely to Drop from January 16

Fuel consumers may get some relief starting January 16. A fuel price cut is expected for the next fortnight. Reports suggest petrol and diesel prices could decline across the country.
Government and industry estimates indicate a noticeable reduction. Petrol prices may fall by up to Rs4.59 per liter. As a result, transport and daily travel costs could ease slightly.

Expected Reduction in Fuel Prices

According to the projections, high-speed diesel may drop by Rs2.70 per litre. Kerosene prices could decrease by Rs1.82. In addition, light diesel oil may become cheaper by Rs2.08 per litre.
Earlier this month, the government announced a sharp reduction. Petrol prices fell by Rs10.28 per litre. High-speed diesel also dropped by Rs8.57 per litre during the last review.
Officials link the expected cut to changes in the global oil market. International prices continue to fluctuate due to supply concerns. Therefore, domestic fuel prices remain sensitive to these shifts.

Global Oil Market Trends

Global oil prices have faced downward pressure recently. This followed increased US control over Venezuelan crude oil exports. However, ongoing geopolitical risks still create uncertainty.
As a result, oil prices continue to move in both directions. Market analysts expect prices in 2026 to remain lower than in 2025. Last year, global oil benchmarks lost nearly 20 percent of their value.
Brent crude is forecast to average below $60 per barrel. Meanwhile, West Texas Intermediate may hover near $50 per barrel. Prices could fall further if demand weakens.
Based on current estimates, revised local prices may soon apply. Petrol could reach Rs248.58 per liter. High-speed diesel may stand at Rs254.38.
Kerosene prices may drop to Rs169.06 per liter. Light diesel oil could fall to Rs144.10 per liter. Therefore, consumers may see modest relief at the pump.