ISLAMABAD:
The Oil and Gas Regulatory Authority (OGRA) has announced a slight increase in Liquefied Petroleum Gas (LPG) prices for December 2024, attributing the adjustment to fluctuations in the exchange rate. In a statement, OGRA clarified that the LPG producer price is directly influenced by the Saudi Aramco Contract Price (CP) and the prevailing US dollar exchange rate.
Although the Saudi Aramco CP remained steady compared to November, a minor 0.05% rise in the average dollar exchange rate resulted in a marginal hike in LPG consumer prices. This increase amounts to an additional Rs1.32 for an 11.8 kg domestic cylinder, reflecting a 0.04% uptick, or Rs0.11 per kilogram.
Following the revision, the producer price of an 11.8 kg LPG cylinder for December 2024 has been set at Rs2,513.45, up from Rs2,512.13 last month. Consequently, the consumer price for the same cylinder now stands at Rs3,000.79, compared to Rs2,999.47 in November.
The LPG Distributors Association noted changes in both domestic and commercial cylinder prices. It stated that the domestic cylinder price has increased by Rs1.32, while the commercial cylinder cost has risen by Rs5.07. Furthermore, the producer price per metric tonne of LPG has climbed by Rs112.16, with the per-kilogram price now set at Rs254.30, slightly up from Rs254.19.
Irfan Khokhar, Chairman of the LPG Industries Association of Pakistan, criticized the lack of adherence to OGRA-notified prices, claiming that LPG is not being sold at regulated rates at any plant nationwide. He accused authorities of failing to curb widespread black marketing, which has inflated LPG prices for months.
“Government institutions remain silent as heavy fines are unfairly imposed on small LPG shopkeepers,” Khokhar said. He described LPG, often called the “fuel of the poor,” as vital for households, particularly during the ongoing natural gas crisis. He further alleged that a supply-controlling mafia exploits consumers by raising prices, draining billions from the public.
Khokhar lamented that LPG prices have now exceeded the affordability of many citizens, especially during the winter months when natural gas shortages are common. “Even preparing one meal a day has become a challenge for many,” he stated, urging the government to enforce regulated pricing to ensure affordable supplies for the masses.
The demand for LPG, primarily used for cooking in remote and northern areas, has surged with the arrival of winter. With natural gas supplies dwindling during colder months, LPG has become a crucial alternative. However, as 60% of local demand relies on imports, the market remains susceptible to international price fluctuations.
