The Oil and Gas Regulatory Authority had recommended the increase in prices of petroleum products.
The price of diesel has been hiked by Rs2.25 and kerosene by Rs3.10 per litre, according to a notification from the finance ministry.
Light diesel will now be sold at Rs84.51 per litre after an increase of Rs2.08.
The fuel price drop will come into effect on New Year's Day.
The price list on QP website showed that premium grade petrol will cost QR1.75 per litre and Super will be available for QR1.90 per litre, the same as December.
As per the notification issued by the government on Tuesday night, the entire increase in the petroleum products has been passed on to consumers.
Petrol prices have increased for the third consecutive day, while the rise in diesel price has continued for the sixth consecutive day.
The retail prices of petrol and oil slightly increased from 15:00 on December 31, following the latest price review by the ministries of Industry and Trade, and Finance. So the final LPG rate for January is Rs151,821.13 per tonne or Rs1,791.48 for each cylinder of 11.8 kg.
This price included excise duty of Rs85/ton, while excluding the petroleum levy.
The decision finally reveals that the revised tariff works out as Rs17.69/kWh and the total impact amounts to around Rs106 billion.