Monday July 15, 2024

Government slashes LPG prices

By Israr Khan
September 01, 2022

ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) has slashed Liquefied Petroleum Gas (LPG) prices by Rs6 per kilogram for domestic and commercial consumers for September 2022.

With the drop in the prices, the domestic gas cylinder weighing 11.8 kilograms will now cost Rs2,496 and the commercial cylinder (45.4kg) would now cost Rs9,604. After the reduction of six rupees, a kilogram of LPG will be available at Rs212.

LPG is being used for cooking purposes in areas where piped natural gas is not available. It is to be noted that Saudi oil giant Aramco has set its September propane price at $350/tonne against $370/tonnes in August, however, the company has kept September butane prices unchanged at $360/tonne.

Propane and butane are two major components of LPG, which the Middle Eastern oil producers sell to Asian countries. Meanwhile, LPG Distributors Association of Pakistan Chairman Irfan Khokhar demanded the government to devise an LPG policy and also recommence the activities of Jam Shoro Joint Venture (JJVL).

For over the last two years, this plant has been closed and at the time of its closure, its production was 15,000 tonnes per month. The closure was costing around Rs60 billion a year to the economy, as the commodity was being imported to meet domestic demand.

He also pinpointed that there is also rampant black-marketing in the sector where the gas is being sold 40 to 60 rupees above the government’s notified prices, while the government has turned a blind eye.

In the current month, without the approval of the Ogra, the LPG price increased in several areas. Khokhar said that the LPG prices in major cities of Pakistan have increased by Rs10/kg and are being sold at Rs250 per kg while in far flung and mountainous areas it is being sold at Rs280 per kg.