OGRA cuts LPG prices by another five rupees

KARACHI: The Oil and Gas Regulatory Authority (OGRA) has reduced the price of liquefied petroleum gas (LPG).

According to the notification, LPG has been reduced by Rs 5.88 per kg from November 1.

After this reduction, an 11.8 kg domestic cylinder of LPG has become cheaper by Rs 69.44.

According to the notification, the new price of a domestic cylinder of LPG has been fixed at Rs 2378.89.

The new price of LPG per kg has become Rs 201.60.

Earlier, Pakistan’s two state-owned gas companies, Sui Northern and Sui Southern Gas Company Limited, had sought a significant increase in fixed gas prices for the fiscal year 2025-26.

Both companies have submitted applications to OGRA to cover a combined deficit of over Rs77 billion.

In the applications submitted to OGRA, Sui Northern has recommended an increase of Rs189 per MMBTU, which will take its average fixed price to Rs1,955.50 per MMBTU, which is currently Rs1,766.50.

The company has estimated a revenue deficit of Rs 52.95 billion for the fiscal year 2025-26, the reasons for which include the increasing cost of imported RLNG, operating expenses, and depreciation.

On the other hand, Sui Southern has requested an increase of Rs 125.41 per MMBTU. Accordingly, the average fixed price will be increased to Rs 1,783.96 per MMBTU, which is currently Rs 1,658.55.

The company has mentioned a deficit of Rs 24.04 billion, and the reasons for this include the increasing cost of gas procurement, financial expenses, and depreciation.

The request also includes an uncollected deficit of Rs 34.24 billion from previous years, after which the total average fixed price reaches Rs 1,962.55 per MMBTU.