LPG Price Update: Here’s the Latest Rate in Pakistan (Jan 2025)

As the cost of living evolves in Pakistan, one key commodity impacting households and industries alike is Liquefied Petroleum Gas (LPG). Widely used for cooking, heating, and as an alternative vehicle fuel, LPG price changes directly affect millions of consumers. Here’s a detailed look at the latest LPG price revision and the factors driving these changes.

LPG Price Cut for January 2025

The government, through the Oil and Gas Regulatory Authority (OGRA), has announced a significant reduction in LPG prices effective January 1, 2025. The price has been slashed by Rs4.02 per kilogram, bringing the rate down from Rs254.30 per kg to Rs250.28 per kg.

This reduction translates into notable savings for consumers:

• Domestic Cylinder (11.8-kg): Price reduced by Rs47.43, now costing Rs2,953.36 (previously Rs3,000.79).
• Commercial Cylinder (45.4-kg): Price reduced by Rs182.51, now costing Rs11,362.71 (previously Rs11,545.22).

Additionally, the production cost of LPG has seen a substantial reduction of Rs4,020 per metric tonne, making the commodity more affordable for consumers nationwide.

Total Revenue from LPG Sales in 2024

Despite fluctuating prices, LPG remained a key energy source in 2024, generating a total revenue of PKR 20,475,896 from sales facilitated through platforms like Zameen News and Zameen Blog. These platforms played a significant role in connecting consumers with reliable suppliers and highlighting LPG’s benefits.

Factors Influencing LPG Prices

While the recent price cut brings relief, LPG prices are influenced by multiple factors:

1. Global Market Trends
   Being an imported commodity, LPG prices are impacted by international crude oil prices and global demand-supply dynamics.
2. Currency Exchange Rates
   The depreciation of the Pakistani Rupee against the US Dollar increases import costs, affecting local prices.
3. Seasonal Demand
   Winter months see a surge in LPG demand for heating, often causing price spikes. However, this year’s reduction comes as a welcome change for consumers bracing for colder weather.
4. Government Policies
   OGRA’s intervention to adjust prices ensures affordability while addressing production and distribution costs.

Impact of the Price Cut

The recent reduction is expected to provide relief to both households and businesses:

• Households: The lower cost of domestic cylinders will ease the financial burden on families, especially in rural areas where LPG is the primary cooking and heating fuel.
• Businesses: Reduced commercial cylinder prices will lower operational costs for industries and small businesses relying on LPG, such as food outlets and manufacturing units.

What This Means for Consumers

Consumers can maximize their savings by adopting energy-efficient appliances and ensuring regular maintenance of LPG systems to prevent wastage. The price cut is an opportunity for households and businesses to plan their energy budgets more effectively.

The Take Away

The government’s move to slash LPG prices by Rs4.02 per kg for January 2025 brings much-needed relief to consumers amid rising living costs. With domestic cylinders now priced at Rs2,953.36 and commercial cylinders at Rs11,362.71, this adjustment underscores efforts to make energy resources more accessible.

For regular updates on LPG prices and other economic developments, stay tuned to Zameen Blog.