Govt cuts LPG prices by 2.5% amid Saudi Aramco’s price drop

ISLAMABAD: Pakistan, as an importer, has lowered the prices of Liquefied Petroleum Gas (LPG) by 2.5 percent or Rs6.45 per kilogram for both domestic and commercial consumers for April 2024.

This reduction follows a decline in the prices of Propane and Butane by Saudi Aramco. With this decline in prices, the domestic gas cylinder weighing 11.8 kilograms will now cost Rs2,954, and the commercial cylinder (45.4kg) at Rs11,365. After the increase of nearly 6.45 rupees, a kilogram of LPG will be available at Rs250.3. LPG is being used for cooking purposes in areas where piped natural gas is not available, according to Oil and Gas Regulatory Authority (Ogra) notification.

Residents in several regions of Pakistan are grappling with unexpected load-shedding despite government promises of uninterrupted natural gas supply during Sehri and Iftari timings in the holy month of Ramazan 2024.

This situation has forced individuals to resort to purchase LPG cylinders to avoid meal preparation disruptions for Sehri and Iftar. The cost of an 11.8-kilogram cylinder, commonly utilized by domestic households, is being sold in the open market at much higher prices than what the government notifies.

In a statement, the regulator said: “The LPG producer price is linked with Saudi Aramco-CP and dollar exchange rate. As compared to the previous month Saudi Aramco-CP has decreased by 2.8 percent. The average dollar exchange rate has also gone down by 0.25 percent resulting to increase in LPG consumer price by Rs76.09/11.8 kg cylinder (2.5 percent). The per Kg decrease in LPG consumer price is Rs6.44.”

Ogra has determined the producer price of LPG, assuming a composition of 40 percent Propane and 60 percent Butane, to be Rs172,484.9 per tonne. This price includes an excise duty of Rs85 per tonne, excluding the petroleum levy of Rs4,669 per tonne. Consequently, the total cost for an 11.8 kg cylinder amounts to Rs2,035.3/11.8kg cylinder.