ISLAMABAD: Pakistan’s Oil and Gas Regulatory Authority (Ogra) on Tuesday slashed liquefied petroleum gas (LPG) prices by 21.8 per cent for July after the Saudi Aramco contract price (CP), the benchmark for LPG imports, fell 25.62 percent and the rupee posted a slight gain against the U.S. dollar, reducing the cost of a standard household cylinder by Rs794.5 to Rs2,848.9.
Ogra said LPG producer prices are linked to the Saudi Aramco CP and the U.S. dollar exchange rate. It said the Saudi benchmark declined 25.62 per cent from the previous month, while the average exchange rate improved marginally by 0.11pc, resulting in a reduction of Rs794.5 in the price of an 11.8-kilogram domestic cylinder.
Under the regulator’s notification, the consumer price was fixed at Rs241.4 per kilogram, down from Rs308.76 in June.
The price of an 11.8-kilogram household cylinder fell from Rs3,643.4 to Rs2,848.9, while the 45.4-kilogram commercial cylinder became cheaper by Rs3,663 to Rs10,223. The revised prices will take effect on July 1.
The sharp decline in the Saudi benchmark came as tensions in the Middle East eased following weeks of conflict that had disrupted energy markets and shipping through the Strait of Hormuz. The partial restoration of maritime traffic helped lower international LPG prices, enabling the regulator to pass on the benefit to consumers.
The latest reduction partially reverses the steep increases recorded during the regional crisis. Since the start of the Middle East unrest, LPG prices had climbed by a cumulative 36.7pc, or Rs82.9 per kilogram, increasing the price of a domestic cylinder by Rs978.
In April alone, prices jumped 35pc, raising the cost of a household cylinder by Rs924 in one of the sharpest monthly increases in recent years.
The latest price cut is expected to provide relief to domestic, commercial and industrial consumers, particularly low-income households that depend on LPG as their primary cooking fuel, amid continued pressure from inflation and weak income growth.
Ogra said the final consumer price includes a petroleum levy of Rs4,669 per tonne, an 18pc general sales tax of Rs30,528 per tonne, down from Rs40,799 in June, and an additional 18pc GST of Rs6,300 on marketing, distribution and transportation margins totaling Rs35,000 per tonne.
