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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.