LPG prices raised by 4pc

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Consumers have already been forced to pay inflated rates of up to Rs315 per kg for the ‘so-called poor’s’ fuel in Islamabad and Rawalpindi.—Dawn/file
Consumers have already been forced to pay inflated rates of up to Rs315 per kg for the ‘so-called poor’s’ fuel in Islamabad and Rawalpindi.—Dawn/file

ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) on Mon­day notified a 3.7 per cent increase in the price of Liquefied Petroleum Gas (LPG), pushing up the 11.8-kg domestic cylinder by Rs87.21 for December to pass on the impact of higher global market prices to consumers.

In a notification, Ogra set the maximum sale price of LPG at Rs209 per kg for December instead of Rs201.6 per kg in November, up Rs7.4 per kg. LPG price at the retail stage is generally on the higher side of Rs300 per kg in different parts of the country due to weak enforcement.

For example, the so-called poor’s fuel price in the twin cities — Rawalpindi and Islamabad — ranged between Rs300 and Rs315 per kg, almost 50pc higher than the maximum price set by the regulator.

As such, the consumer-end price of 11.8kg domestic cylinder was set at Rs2,466.10 for the current month against Rs2,378.90 last month. On the other hand, the price of a commercial cylinder (45.4kg) was increased by Rs336 to Rs9,488.6 for December against Rs9,152.6 in November.

As per Ogra calculation, the producer price of LPG (propane 40pc and butane 60pc) has been determined at Rs137,442.82 per tonne for December against Rs131,178 in November. The new price included excise duty of Rs85 per tonne.

With the addition of Rs4,669 per tonne of petroleum levy and 18pc general sales tax of Rs25,580, the maximum producer price was worked out at Rs167,691.40 for December against Rs160,300 last month. The maximum producer price for a domestic cylinder of 11.8kg was thus calculated at Rs1,978.76 for the ongoing month against Rs1,891.55 last month.

For consumer price, another Rs35,000 per tonne of marketing (Rs17,000), distribution (Rs10,000) and transportation (Rs8,000) margin was added to the maximum producer price, besides an additional 18pc GST (Rs6300 per tonne on this margin).

Thus, the consumer’s maximum LPG price was fixed at Rs208,991.40 per tonne (Rs2,466.10 per cylinder of 11.8kg) for December against Rs201,600.43 per tonne or Rs2,378.89 per 11.8kg of domestic cylinder in November. The new prices would remain in the field until Dec 31.

Ogra explained that the LPG producer price was linked to the Saudi Aramco-CP and the US dollar exchange rate under the legal and regulatory arrangement put in place by the federal government.

It said the Saudi Aramco-CP price increased by 4.93pc when compared to the previous month, while the average dollar exchange rate decreased by 0.15pc, resulting in an increase in the LPG consumer price by Rs87.21 per 11.8kg cylinder (3.66pc). The per kg increase in LPG consumer price amounted to Rs7.39, it said.

Published in Dawn, December 2nd, 2025

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