The Oil and Gas Regulatory Authority has officially notified a substantial 35 percent increase in the prices of Liquefied Petroleum Gas for the month of April. This sharp upward revision comes as a direct consequence of escalating costs in the global energy market, significantly impacting the household budgets of millions across the country. According to the formal notification issued by the regulator on Tuesday, the cost of a standard 11.8kg domestic cylinder has been jacked up by 924 rupees, marking one of the most significant monthly price jumps in recent memory.
Under the newly established pricing framework, the cost of LPG has been fixed at 304.15 rupees per kilogram for April, representing a steep climb from the March rate of 225.84 rupees per kilogram. Consequently, consumers will now have to pay 3,588.60 rupees for a domestic cylinder, compared to the previous month’s price of 2,664.88 rupees. The authority detailed that this adjustment was necessitated by a massive 44 percent surge in the Saudi Aramco Contract Price, which serves as the international benchmark for domestic gas pricing in Pakistan.
The technical breakdown provided by the regulator shows that the producer price for LPG, which consists of a mixture of propane and butane, was determined at over 262,817 rupees per tonne for the current month. This figure includes an excise duty along with a petroleum levy and an 18 percent General Sales Tax. The total tax component on a per-tonne basis has seen a dramatic increase, with the GST alone rising to 40,091 rupees from the 26,552 rupees recorded in March. These fiscal elements, combined with high international procurement costs, have left the regulator with little room to maintain the previous price levels.
In addition to the base producer costs, the final consumer price incorporates various margins for marketing, distribution, and transportation. These margins are currently set at 35,000 rupees per tonne, covering the logistical expenses required to move the fuel from production points to end consumers. Despite a very slight decrease of 0.11 percent in the average dollar exchange rate during the transition period, the sheer weight of the international price hike completely overwhelmed any minor gains from currency stability.
The new pricing structure is effective immediately and is scheduled to remain in place until April 30. This development adds further pressure to the inflationary environment, particularly for rural and semi-urban populations who rely heavily on LPG cylinders for cooking and heating in the absence of piped natural gas. As the global energy crunch continues to dictate domestic rates, the government and regulatory bodies remain focused on ensuring the continuous supply of fuel while passing on the unavoidable costs of the international market to the domestic sector.
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