OGRA reduces LPG prices by Rs4.62 per kg for June

Islamabad, June 1, 2025 – The Oil and Gas Regulatory Authority (OGRA) announced a reduction in liquefied petroleum gas (LPG) prices by Rs4.62 per kilogram (1.88%) for June, providing relief to consumers amid fluctuating global energy rates.

New LPG price: Rs240.53 per kg (down from Rs245.16 in May).

11.8kg domestic cylinder: Now priced at Rs2,838.31, compared to Rs2,892.91 last month—a Rs54.60 reduction per cylinder.

This marks the second consecutive monthly price cut after a Rs3.20/kg decrease in May.

OGRA attributed the price adjustment to a 2.67% drop in Saudi Aramco’s contract price (CP)—a benchmark for LPG producer costs—and a marginal 0.35% rise in the US dollar exchange rate.

In a separate move to combat fuel-related corruption, the government introduced the Petroleum (Amendment) Act, 2025 in the National Assembly. The bill, tabled by Petroleum Minister Ali Pervaiz Malik, proposes digital tracking of petroleum products from import to retail to prevent:

Smuggling (costing Pakistan Rs300-500 billion annually).

Adulteration (damaging engines and the environment).

Illegal petrol pumps and LPG decanting units.

Earlier this month, authorities sealed eight illegal LPG dealerships and imposed fines of Rs5,000 each as part of a broader crackdown on unauthorized fuel sales.

The latest price cut is expected to ease household expenses, particularly for low-income families relying on LPG for cooking. However, industry analysts warn that global oil price volatility and exchange rate fluctuations could influence future adjustments.

With the new digital tracking system, the government aims to enhance transparency in the fuel supply chain, potentially stabilizing prices and reducing black-market activities in the long term.