Ogra cuts LPG prices by Rs4 per kg for Jan

ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) has reduced liquefied petroleum gas (LPG) prices by Rs4 per kilogram for January 2025.

The new rates, effective January 1, apply to both domestic and commercial consumers.

According to a notification issued by Ogra on Tuesday, the price of an 11.8-kilogram domestic LPG cylinder has been reduced to Rs2,953, down from Rs3,001. Similarly, the cost of a commercial LPG cylinder (45.4 kg) has been slashed by Rs182, now priced at Rs11,363 compared to the previous rate of Rs11,545.

The production cost of LPG has also seen a significant decrease, with a reduction of Rs4,020 per metric ton. This adjustment has contributed to making LPG more affordable for consumers nationwide.

The revised rates are expected to benefit households and businesses by lowering energy costs.

However, reports suggest that LPG is still being sold at rates exceeding Rs300 per kilogram in several areas, including the capital, Islamabad. While Ogra’s notification confirms the new price structure, the regulator has faced criticism for its inability to enforce these rates effectively.

The LPG producer price is tied to fluctuations in the Saudi Aramco Price (CP) and the exchange rate of US dollar. Ogra reported that the Saudi Aramco-CP had declined by 2.0 percent compared to the previous month, while the average dollar exchange rate had increased slightly by 0.12 percent. As a result, the LPG consumer price for an 11.8-kilogram cylinder has decreased by Rs47.43 (or 1.58 percent).