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The Liquefied Petroleum Gas (LPG) market in Pakistan has experienced notable fluctuations in pricing over recent months, influenced by various global and domestic factors.​

January 2025: Price Reduction

In January 2025, the Oil and Gas Regulatory Authority (OGRA) announced a reduction in LPG prices. The per-kilogram price decreased by Rs. 4.02, setting the new rate at Rs. 250.28. This adjustment lowered the cost of an 11.8 kg domestic cylinder to Rs. 2,953.36, offering some relief to consumers. The reduction was attributed to a 2% decrease in the Saudi Aramco Contract Price (CP), despite a slight increase of 0.12% in the US dollar exchange rate.

February 2025: Price Increase

Conversely, in February 2025, OGRA implemented a price increase of Rs. 3.68 per kilogram, bringing the LPG price to Rs. 254 per kilogram. This hike resulted in an 11.8 kg domestic cylinder priced at approximately Rs. 2,997. The increase was primarily due to a 1.6% rise in the Saudi Aramco CP and a marginal 0.19% uptick in the US dollar exchange rate.

March 2025: Price Decrease

In March 2025, OGRA announced a decrease in LPG prices by Rs. 6.15 per kilogram, reducing the price to Rs. 247.82 per kg. This adjustment brought the cost of an 11.8 kg domestic cylinder down to Rs. 2,924.31. The reduction was linked to a 3.18% decrease in the Saudi Aramco CP, even though the average dollar exchange rate saw a slight increase of 0.21%. ​

Market Dynamics

These price variations highlight the sensitivity of Pakistan’s LPG market to international benchmarks like the Saudi Aramco CP and fluctuations in the US dollar exchange rate. Additionally, seasonal demand shifts, particularly during winter months, significantly impact LPG consumption patterns. The government’s efforts to adjust electricity tariffs to manage power consumption further influence the energy market dynamics. For instance, reduced electricity tariffs during winter aim to boost consumption and conserve natural gas. ​

Looking Ahead

As of April 2025, stakeholders in the LPG market should remain vigilant of global oil price trends, currency exchange rate movements, and domestic policy changes. These factors collectively shape the pricing landscape of LPG in Pakistan, directly affecting consumers and businesses reliant on this energy source.

The Oil and Gas Regulatory Authority (Ogra) has intensified its efforts against illegal LPG decanting, gas theft, and hazardous CO₂ mixing in Sindh and Punjab, sealing multiple sites and registering FIRs against violators.

Following reports of unauthorized CO₂ mixing with liquefied petroleum gas (LPG) in Khairpur Mirus, Ghotki, Pano Aqil, and Ranipur, Ogra’s enforcement teams conducted raids in Sindh, shutting down four illegal sites. Similarly, in Punjab, inspections in Gujranwala revealed substandard LPG cylinder manufacturing, leading to the closure of three illicit facilities.

Additionally, investigations into recent LPG plant fires in Multan and Dera Ghazi Khan highlighted negligence by local operators, prompting further enforcement actions. Illegal gas decanting and theft sites along the National Highway in Ranipur and Ghotki were also identified and sealed.

Ogra has reaffirmed its commitment to enforcing strict safety standards and warned that any future violations will face legal consequences.

As of 2024, the demand for LPG in Pakistan is steadily increasing. According to recent statistics:

• The LPG consumption in Pakistan has surpassed 1.5 million metric tons annually, with household use accounting for the majority.
• The transportation sector accounts for around 10% of LPG usage, a figure expected to grow as more vehicles are converted to LPG.
• Over 7 million households rely on LPG for cooking and heating purposes, especially in regions with limited access to piped natural gas.
• Government initiatives, including a reduction in regulatory duties on LPG imports and subsidies for rural areas, have led to a 12% annual growth rate in LPG supply.
• The establishment of over 4,000 LPG filling stations nationwide is making it more accessible for both domestic and commercial users (Source: Pakistan Bureau of Statistics, 2023).

The Role of Ayan Energy in Pakistan’s LPG Industry

At Ayan Energy, we are committed to revolutionizing the energy sector by promoting the adoption of LPG. Here’s how we are making an impact:

1. Reliable Supply Chain: Our robust distribution network ensures that LPG reaches every corner of Pakistan, from bustling cities to remote villages.

2. Safety and Quality Standards: We prioritize safety by adhering to international standards in LPG storage, handling, and transportation.

3. Customer Education: We believe in empowering our customers with knowledge about the safe and efficient use of LPG.

Benefits of Switching to LPG

For households and businesses considering a switch to LPG, the benefits are clear:

• Convenience: LPG cylinders are easy to transport and install.
• Energy Efficiency: LPG appliances are designed for high efficiency, reducing energy waste.
• Versatility: From cooking and heating to industrial applications, LPG can meet diverse energy needs.

Challenges and the Way Forward

While LPG offers numerous advantages, the sector faces challenges such as price volatility and inadequate infrastructure in some regions. To overcome these hurdles, collaboration between the government, private sector, and international partners is essential. Investments in storage facilities, pipeline infrastructure, and consumer awareness campaigns will further strengthen Pakistan’s LPG ecosystem.

As winter approaches, the government announces an increase in the price of Liquefied Petroleum Gas (LPG).

THE Oil and Gas Regulatory Authority (Ogra) issued a notification, stating the LPG price went up by Rs2.88 per kg.

The price of the domestic cylinder has gone up by Rs34. 9, according to the Ogra notification.

The Oil and Gas Regulatory Authority (OGRA) has reduced the price of liquefied petroleum gas (LPG) by Rs4 per kilogram for January 2025. 

The new rates, effective from January 1, apply to both domestic and commercial consumers.

According to a notification issued, the price of an 11.8-kilogram domestic LPG cylinder has been reduced to Rs2,953, down from Rs3,001. 

Similarly, the price of a 45.4-kilogram commercial cylinder has been slashed by Rs182, bringing it down to Rs11,363 from the previous Rs11,545.

OGRA also announced a reduction in LPG production costs, which have dropped by Rs4,020 per metric ton. The revised rates aim to make LPG more affordable for households and businesses across the country.

Despite the price cut, reports indicate that LPG is being sold at rates exceeding Rs300 per kilogram in various areas, including Islamabad. Critics have raised concerns over OGRA’s inability to enforce the new pricing effectively in the market.

The regulator explained that the LPG producer price is influenced by fluctuations in the Saudi Aramco Price (CP) and the US dollar exchange rate. The Saudi Aramco-CP reportedly declined by 2 percent compared to the previous month, while the average exchange rate increased slightly by 0.12 percent. These factors contributed to a reduction of Rs47.43 (or 1.58 percent) in the price of an 11.8-kilogram domestic cylinder.