OGRA Raises LPG Price for December as Global Rates Climb

The Oil and Gas Regulatory Authority has increased the official price of Liquefied Petroleum Gas for December, raising the cost of an 11.8-kilogram domestic cylinder by Rs. 87.21 after global benchmark rates moved higher. In a notification issued on Monday, Ogra set the maximum LPG sale price at Rs. 209 per kilogram, up from Rs. 201.60 per kilogram in November. This translates into a consumer price of Rs. 2,466.10 for a domestic cylinder, compared to Rs. 2,378.90 last month. However, retail prices in many parts of the country, including Rawalpindi and Islamabad, continue to hover between Rs. 300 and Rs. 315 per kilogram, nearly 50 percent higher than the regulator’s ceiling due to poor market enforcement. The price of a commercial cylinder weighing 45.4 kilograms has also been revised upward, increasing by Rs. 336 to Rs. 9,488.60 for December. OGRA’s calculations show that the producer price of LPG, based on a blend of 40 percent propane and 60 percent butane, rose to Rs. 137,442.82 per tonne for December from Rs. 131,178 in November. After including taxes, levies, and margins, the maximum producer price increased to Rs. 167,691.40 per tonne. For consumers, additional marketing, distribution, and transportation costs of Rs. 35,000 per tonne, along with 18 percent GST on margins, pushed the final notified price to Rs. 208,991.40 per tonne. These rates will remain effective until December 31. OGRA attributed the increase to a 4.93 percent rise in the Saudi Aramco Contract Price, which forms the basis of LPG valuations, while noting that the average dollar exchange rate fell slightly by 0.15 percent. The combined impact resulted in a per-kilogram price rise of Rs. 7.39 for consumers.