As the cost of living in Pakistan continues to evolve, the government’s recent reduction in Liquefied Petroleum Gas (LPG) prices comes as a welcome relief for millions of households and industries.
Effective January 1, 2025, the Oil and Gas Regulatory Authority (OGRA) announced a significant price cut, benefiting both domestic and commercial consumers.
New LPG Prices
The per-kilogram price of LPG has been reduced by Rs4.02, bringing it down from Rs254.30 to Rs250.28. Here’s how this impacts cylinder prices:
- Domestic Cylinder (11.8 kg): Reduced by Rs47.43, now costing Rs2,953.36 (previously Rs3,000.79).
- Commercial Cylinder (45.4 kg): Reduced by Rs182.51, now priced at Rs11,362.71 (previously Rs11,545.22).
Additionally, the production cost of LPG has dropped by Rs4,020 per metric tonne, further enhancing affordability.
For Households
The lower cost of domestic LPG cylinders will reduce financial strain, particularly for families in rural areas where LPG is the primary energy source for cooking and heating.
For Businesses
Reduced prices for commercial cylinders will cut operational costs for industries and small businesses that rely on LPG, such as restaurants, food outlets, and manufacturing units.
- Global Market Trends
LPG prices fluctuate based on international crude oil prices and global supply-demand dynamics. - Currency Exchange Rates
The devaluation of the Pakistani Rupee against the US Dollar impacts the cost of importing LPG. - Seasonal Demand
Winter typically drives up LPG demand for heating purposes, often leading to price increases. The current reduction during the colder months provides much-needed relief. - Government Policies
OGRA’s proactive approach ensures LPG prices remain manageable for consumers while addressing production and distribution costs.
Revenue from LPG Sales in 2024
In 2024, LPG sales generated a revenue of PKR 20,475,896, supported by platforms like Zameen News and Zameen Blog, which connected consumers with reliable suppliers and highlighted LPG’s role in meeting energy needs.
Maximizing Savings
Consumers can make the most of the price reduction by:
- Using energy-efficient appliances to minimize consumption.
- Maintaining LPG systems regularly to avoid leaks and wastage.
- Planning their energy budgets effectively to adapt to changing prices.