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Pakistan’s LPG consumers will face higher costs in December as the Oil and Gas Regulatory Authority (OGRA) has officially raised domestic and commercial cylinder prices. The increase follows a jump in global benchmark rates, pushing up the regulated price for households at a time when retail markets are already selling well above official levels.
Official Price Revision for December
In its latest notification, OGRA set the maximum LPG sale price at Rs 209 per kilogram, compared to Rs 201.60 last month. This means an 11.8 kg domestic cylinder will now cost Rs 2,466.10, up from Rs 2,378.90 in November.
A senior official noted that the revision was in line with international market trends.
Retail Market Still Overcharging
Despite the regulated cap, prices in Rawalpindi, Islamabad, and other major cities continue to range between Rs 300 and Rs 315 per kilogram, nearly 50 percent higher than OGRA’s official rate. Market observers say weak enforcement and supply chain issues allow retailers to bypass the notified ceiling.
Commercial Cylinder and Producer Price Details
The price of a 45.4 kg commercial cylinder has also risen, now costing Rs 9,488.60, an increase of Rs 336.
OGRA’s calculations show a rise in the producer price to Rs 137,442.82 per tonne, driven by the international propane butane blend. After adding taxes and margins, the notified consumer price reached Rs 208,991.40 per tonne, effective until December 31.
Reason Behind the Increase
OGRA stated that the adjustment is tied to a 4.93 percent jump in the Saudi Aramco Contract Price, which is the key reference for global LPG valuation. The regulator added that the dollar exchange rate moved slightly lower by 0.15 percent, but the overall impact still resulted in a per-kilogram rise of Rs 7.39 for December.
