The Oil and Gas Regulatory Authority (Ogra) has announced a significant increase in prices of liquefied petroleum gas (LPG) effective from October 1, 2023.
The new pricing structure, in accordance with the federal government’s policy guidelines, indicates a notable surge in LPG rates, which will impact both producers and consumers.
As per the latest determination, the LPG producer price has gone up to Rs219,686.69 per ton for October 2023 as compared to Rs198,826.33 per ton in September. The price has soared by Rs20,860.36 per ton, or 8.7%, translating into an increase of Rs246.15 in the rate of an 11.8kg cylinder. Likewise, the LPG consumer price has also recorded a sharp uptick. From the rate of Rs240,126.33 per ton in September, the price tag for consumers has climbed to Rs260,986.69 per ton for October.
This surge, amounting to Rs20,860.36 per ton, or 8.7%, will lead to an increase of Rs246.15 in the price of 11.8kg cylinder. The primary force behind the notable price hike is the correlation between LPG producer prices and the Saudi Aramco contract price as well as the US dollar exchange rate, said Ogra in a statement. In comparison with the previous month, the Saudi Aramco contract price has risen by 9.53% and the average dollar exchange rate has gone up by 1.15%, resulting in a surge of Rs246.15 in the price of 11.8kg cylinder.
Published in The Express Tribune, October 1st, 2023.
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