ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) on Thursday notified a 7.6 prt cent reduction in the price of Liquefied Petroleum Gas (LPG) for August, cutting the cost of an 11.8kg domestic cylinder by Rs209.24 following a decline in international prices.

According to a notification, the price of LPG has been set at Rs215.37 per kg for August, down from Rs233.10 in July — a decrease of Rs17.73 per kg. Consequently, the price of an 11.8kg domestic cylinder has been fixed at Rs2,541.36, compared to Rs2,750.60 last month. The price of a 45.4kg commercial cylinder has also been reduced by Rs805 to Rs9,778, from Rs10,583 in July.

Ogra’s pricing formula shows that the producer price for LPG (comprising 40pc propane and 60pc butane) has been calculated at Rs142,847.32 per tonne for August, down from Rs157,875 per tonne in July. This figure includes an excise duty of Rs85 per tonne, translating to a producer price of Rs2,054 per 11.8kg cylinder, compared to Rs2,263 in July.

After adding a petroleum levy of Rs4,669 per tonne and 18pc GST amounting to Rs26,552.94, the maximum producer price reached Rs174,069.26 per tonne, down from Rs191,802 last month. This brings the maximum producer price for an 11.8kg cylinder to Rs2,541.36 for August.

For the consumer-end price, Ogra added Rs35,000 per tonne in margins — comprising Rs17,000 for marketing, Rs10,000 for distribution, and Rs8,000 for transportation — along with 18pc GST of Rs6,300 per tonne on these margins. The final consumer price has been fixed at Rs215,369.26 per tonne, or Rs2,541.36 per 11.8kg domestic cylinder, for August. This compares with Rs233,102 per tonne, or Rs2,750.60 per cylinder, in July. The notified prices will remain effective until Aug 31.Ogra attributed the price reduction to a 9.8pc decline in Saudi Aramco’s Contract Price (CP), offset slightly by a 0.38pc increase in the average exchange rate. Overall, the changes have resulted in a Rs209.24 drop in the price of an 11.8kg LPG cylinder and a Rs17.73 per kg reduction for consumers.

Published in Dawn, Aug 1st, 2025