LPG Rates Rise Due to International Price Hike & Massive Shortage

The government has increased the price of liquefied petroleum gas (LPG) by Rs. 46.76 to Rs. 1345.07 for 11.8 kg cylinders and increased it by Rs. 180 for commercial cylinders for the month of July.

According to the notification issued by the Oil and Gas Regulatory Authority (OGRA), LPG price has been increased by Rs. 3.96 per kg to Rs. 114 per kg making the domestic cylinder’s price Rs. 1,345 compared to Rs. 1,298 for July. The new prices will come into effect from July 1, 2020.

The hike in the prices is due to CP price hike from Aramco’s CPs $340 to $550, and the Sui Southern Gas Company (SSGC)’s refusal to extend the contract with Jamshoro Joint Venture (JJVL). LPG is consumed in almost 74 percent of those areas as natural gas is not available.

Pakistan LPG Marketers Association had warned the government against the shortage of Liquefied Petroleum Gas (LPG) in the country after the culmination of an agreement between Sui Southern Gas Company (SSGC) and Jamshoro Joint Venture Limited (JJVL).

Following the end of the agreement, LPG prices are expected to rise further in the coming months due to a shortfall of 300 tons in the system.

The price of the commercial cylinder also increased from Rs. 4,995 to Rs. 5,175 for the current month. The production cost has increased from Rs. 54,372 to Rs. 57,757.

Spokesman OGRA Imran Ghaznavi tweeted: