Big cut in LPG Prices as Pakistan slashes Rates by Rs67.30/kg

ISLAMABAD – Pakistani government announced big reduction in Liquefied Petroleum Gas (LPG) prices amid changes in petroleum product prices. According to a notification issued by the Oil and Gas Regulatory Authority (OGRA), the price of LPG has been reduced by Rs67.30 per kilogram, bringing the cost of an 11.8-kilogram domestic cylinder down to Rs2,848.91. The revised prices will take effect from July 1. The sharp decline comes after a substantial fall in international pricing benchmarks. OGRA said LPG producer prices are linked to the Saudi Aramco Contract Price (CP) and the US dollar exchange rate. Compared with the previous month, the Saudi Aramco CP dropped 25.62%, while the average dollar exchange rate edged down 0.11%. As a result, consumers will benefit from an overall 21.80% reduction in LPG prices, marking one of the steepest monthly declines in recent months. The latest price cut is expected to provide meaningful relief to domestic consumers who rely on LPG for cooking and heating, particularly in areas where piped natural gas is unavailable. The move also reinforces the impact of softer global energy prices on Pakistan’s domestic fuel market. Despite the government’s official LPG price of Rs308 per kilogram, retailers across Punjab, including Lahore, continue to sell the fuel at Rs480 to Rs500 per kilogram, leaving consumers to bear sharply inflated costs. Market sources said some dealers are raising prices by Rs10 to Rs20 per kilogram daily, widening the gap between the notified and retail rates. Federal Minister for Petroleum Ali Pervaiz Malik warned of strict action against overcharging, saying authorities have been directed to crack down on black marketing, hoarding, and profiteering while ensuring compliance with the government’s official price list. Pakistan’s New Petroleum Fund Explained: Will it really keep Petrol Prices stable?