Pakistan has witnessed a notable increase in the use of Liquefied Petroleum Gas (LPG) due to rising energy demands. Recently, the price of LPG has surged by 7.3 Rs per kg. The current LPG rate in Pakistan stands at 251.30 Rs per kg. Additional details are provided in the table below.
LPG Rate Of October 2024
| LPG Volume | Old Price (PKR) | New Price (PKR) | Difference |
| LPG Rate Per Kg | 244 | 251.30 | 7.3 |
| Domestic Cylinder Rate ( 11.8 kg ) | 2879.2 | 2965.34 | 86.14 |
| Commercial Cylinder Rate ( 45.4 kg ) | 11077.6 | 11409.02 | 331.42 |
LPG prices in Pakistan have started rising with the end of the summer season, a trend that is expected to continue in the coming months. This seasonal pattern often leads to price hikes during cooler weather. The Oil and Gas Regulatory Authority (OGRA) regulates the LPG sector, playing a key role in ensuring fair pricing and market stability.
Factors Influencing LPG Prices in Pakistan
Several factors influence the LPG rate in Pakistan, both locally and globally. Some key factors are outlined below:
Crude Oil Prices: The cost of crude oil in the international market is a major factor since LPG is derived from it. Global geopolitical events, such as the Russia-Ukraine war, can significantly impact crude oil supply and demand, thereby affecting LPG prices.
Refining Cost: Extracting LPG from crude oil involves refining, and the cost of refining is factored into LPG pricing. Refining costs vary depending on the quality of the crude oil, the technology used for processing, and the specific requirements for gas extraction.
Supply and Demand: In Pakistan, gas consumption rises sharply during the winter season, driving prices higher. This is a basic principle of supply and demand—when demand increases, prices tend to rise.
Government Policies and Taxes: In Pakistan, taxes play a critical role in the pricing of oil products. Due to ongoing political and economic challenges, the government often imposes new taxes and policies, particularly on imported goods, to stabilize the economy.
Distribution Cost: After LPG is extracted from crude oil, it is transported to local gas stations via pipelines, where it is further processed and then distributed to consumers. The cost of operating these gas stations varies based on the distribution strategies of different companies.
Regional Price Variations
If you notice slight price variations in different regions of Pakistan, especially in remote areas, there’s no need to worry. This is a common occurrence, and here’s why these variations in LPG rates happen:
International Prices: Fluctuations in global crude oil and natural gas prices directly impact the cost of LPG imports, leading to changing prices in Pakistan.
Supply and Demand: Domestic production levels and consumption patterns influence local availability and pricing. Seasonal demand, especially during winter when LPG is used for heating, can drive prices higher.
Transportation Costs: Transporting LPG from production facilities to local shops incurs costs. The farther the LPG has to travel, the more expensive it becomes. This leads to higher prices in regions far from extraction or processing plants.
Dealer Margins: As LPG passes through multiple dealers to reach distant areas, each dealer adds their margin, resulting in higher prices for consumers in remote regions.
Government Policies: Taxes, subsidies, and import tariffs set by the government play a significant role in determining the final retail price of LPG. Changes in these policies can affect pricing and market stability in different regions.
Urban areas like Karachi, Lahore, Faisalabad, Multan, Rawalpindi, Gujranwala, Peshawar, Quetta, and Sialkot often have lower LPG prices due to better infrastructure compared to distant and less-developed regions of Pakistan.
Guide For Big Differences in the OGRA and Market Rates
During our research, we observed that in some regions, certain sellers are not adhering to market rates for LPG. Instead, they are setting their own prices, leading to significant increases in LPG rates across different areas in Pakistan.
This practice is illegal, and individuals involved in such activities can face imprisonment under Pakistani law. The government has implemented several measures to control these unlawful actions, including the following:
Qeemat Punjab App:
This app is designed to help people stay informed about the daily prices of various commodities, including LPG. If you encounter a dealer charging excessive prices, you can download the app, log in, and file a complaint. The complaint will be forwarded to the Price Control Unit, which will take legal action.
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Government Helpline:
You can also report overcharging by calling the government helpline at 080002345. This helps authorities regulate prices and take action against dishonest dealers. If this number is not available in your area, search for your local government-issued helpline on Google.