LPG Prices Move Higher in December — New Official Rates Announced

LPG Prices Move Higher in December — New Official Rates Announced

The Oil and Gas Regulatory Authority (OGRA) has revised the official price of liquefied petroleum gas for December, increasing the cost of an 11.8-kilogram domestic cylinder by Rs. 87.21 following a rise in global benchmark rates.

A notification issued Monday set the maximum LPG sale price at Rs. 209 per kilogram, compared to Rs. 201.60 in November. That puts the consumer price of a domestic cylinder at Rs. 2,466.10, up from Rs. 2,378.90 last month.

LPG Prices Move Higher in December — New Official Rates Announced

Despite the updated ceiling, retail prices in many areas — especially Islamabad and Rawalpindi — continue to range from Rs. 300 to Rs. 315 per kilogram, nearly 50% higher than OGRA’s notified rate due to limited enforcement.

The price of a 45.4-kilogram commercial cylinder has also been increased, now costing Rs. 9,488.60, a rise of Rs. 336 for December.

OGRA data shows the producer price based on a propane-butane blend rose to Rs. 137,442.82 per tonne from Rs. 131,178. Including taxes, levies, and margins, the maximum producer price reached Rs. 167,691.40 per tonne.

With marketing, distribution, and transport charges of Rs. 35,000 per tonne, plus 18% GST applied on margins, the final notified consumer price stands at Rs. 208,991.40 per tonne. These rates are valid until December 31.

The regulator attributed the increase to a 4.93% rise in the Saudi Aramco Contract Price, which serves as the benchmark for LPG valuation. OGRA noted that a slight 0.15% drop in the average dollar exchange rate only partially offset the overall impact, resulting in a Rs. 7.39 per-kilogram price increase for consumers.

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