Oil and gas regulator in Pakistan revises LPG prices for February

The Oil and Gas Regulatory Authority (OGRA) has increased the maximum price for Liquefied Petroleum Gas (LPG) by 1.47% effective February 1, 2025.

The notified LPG producer price is set at PKR 212,673 per ton, translating to PKR 2,510 for an 11.8 kg cylinder. This marks an increase from January 2025, where the price was PKR 208,984 per ton and PKR 2,466 for an 11.8 kg cylinder.

Similarly, the LPG consumer price for February 2025 is fixed at PKR 253,973 per ton, amounting to PKR 2,997 for an 11.8 kg cylinder. This is up from January 2025 prices of PKR 250,284 per ton and PKR 2,953 per cylinder.

The hike in LPG prices is attributed to a 1.6% increase in Saudi Aramco Contract Prices (CP) and a slight rise of 0.19% in the US dollar exchange rate, leading to a 1.47% increase in LPG consumer prices.

Moreover, the increase is attributed to a 4.8% rise in international oil prices, from $79.54/bbl on (Jan-15), to $83.40/bbl (Jan-31), following OPEC’s decision to delay its production ramp-up plans.

Pakistan's annual LPG demand is estimated at approximately 1.4 million tons, with local production accounting for around 876,000 tons. The remaining demand is met through imports. The rising local demand, particularly in winter months when usage increases by about 25% for heating purposes in regions like Punjab, NWFP, and Gilgit Baltistan, necessitates higher imports.

Despite OGRA's set prices, the retail price of LPG often remains lower due to market competition. The Oil and Gas Development Authority regulates LPG prices, adding government levies such as CED, Petroleum Development Levy, GST, and distribution margin to the producer price.