19 February 2025, 09:50 AM
Many Pakistani homes, particularly in the winter when heating demand rises, depend critically on liquefied petroleum gas (LPG). But LPG costs have been rising steadily, which presents financial difficulties for many families.
Recent Price Increase in Cylinder
The Oil and Gas Regulatory Authority (OGRA) declared in February 2025 an increase in LPG prices by Rs. 7.31 per kilogram, therefore establishing the new price at Rs. 254 per kg. This change brought an 11.8 kg residential cylinder from Rs. 3,000. February 2025 witnessed a further increase of Rs. 2.89 per kg, therefore driving the price to Rs. 251.19 per kg. As so, a household cylinder's price dropped by Rs. 34.09, coming to Rs. 2, 999.47.
Variables Affecting LPG Prices
Many factors influence LPG prices in Pakistan to vary:
LPG manufacturer prices in Pakistan are correlated with Saudi Aramco Contract Price (CP). Changes in these worldwide standards immediately affect local LPG expenses. For example, the February 2025 price rise was greatly influenced by a 3.84% rise in the Saudi Aramco-CP.
Exchange Rate Variations: Import expenses depend on the value of the Pakistani Rupee against the US Dollar. LPG pricing can be affected even by little variations in the exchange rate. Along with the price shift, in February 2025 a minor decline of 0.125% in the average dollar exchange rate was observed.
Seasonal Demand: LPG use naturally increases for heating uses when winter arrives. As seen in the months preceding and throughout the winter, this higher demand sometimes results in price increases.
Regulatory Measures and Enforcement: Although OGRA sets official rates, enforcement presents still difficulties. Studies have shown that poor regulatory control was causing LPG to be marketed at higher rates—between Rs. 280 and Rs. 300 per kg—despite official rates in some urban locations.
Effect on Customers
Consumers, especially those from low-income homes who depend on LPG for daily cooking and heating needs, have been seriously financially burdened by the continual increase in LPG costs. The difference between government rates and market rates aggravates this load since people have to devote more of their income to energy costs.
In conclusion
lpg price in pakistan follow a complicated interaction of international market trends, currency exchange rates, seasonal demand, and regulatory efficacy. Dealing with these issues calls for a multifarious strategy involving improving public knowledge to lessen the effect of price swings on the population, strengthening of regulatory systems, and investigation of alternate energy sources.
Recent Price Increase in Cylinder
The Oil and Gas Regulatory Authority (OGRA) declared in February 2025 an increase in LPG prices by Rs. 7.31 per kilogram, therefore establishing the new price at Rs. 254 per kg. This change brought an 11.8 kg residential cylinder from Rs. 3,000. February 2025 witnessed a further increase of Rs. 2.89 per kg, therefore driving the price to Rs. 251.19 per kg. As so, a household cylinder's price dropped by Rs. 34.09, coming to Rs. 2, 999.47.
Variables Affecting LPG Prices
Many factors influence LPG prices in Pakistan to vary:
LPG manufacturer prices in Pakistan are correlated with Saudi Aramco Contract Price (CP). Changes in these worldwide standards immediately affect local LPG expenses. For example, the February 2025 price rise was greatly influenced by a 3.84% rise in the Saudi Aramco-CP.
Exchange Rate Variations: Import expenses depend on the value of the Pakistani Rupee against the US Dollar. LPG pricing can be affected even by little variations in the exchange rate. Along with the price shift, in February 2025 a minor decline of 0.125% in the average dollar exchange rate was observed.
Seasonal Demand: LPG use naturally increases for heating uses when winter arrives. As seen in the months preceding and throughout the winter, this higher demand sometimes results in price increases.
Regulatory Measures and Enforcement: Although OGRA sets official rates, enforcement presents still difficulties. Studies have shown that poor regulatory control was causing LPG to be marketed at higher rates—between Rs. 280 and Rs. 300 per kg—despite official rates in some urban locations.
Effect on Customers
Consumers, especially those from low-income homes who depend on LPG for daily cooking and heating needs, have been seriously financially burdened by the continual increase in LPG costs. The difference between government rates and market rates aggravates this load since people have to devote more of their income to energy costs.
In conclusion
lpg price in pakistan follow a complicated interaction of international market trends, currency exchange rates, seasonal demand, and regulatory efficacy. Dealing with these issues calls for a multifarious strategy involving improving public knowledge to lessen the effect of price swings on the population, strengthening of regulatory systems, and investigation of alternate energy sources.