Thursday, July 31, 2025 - The federal government has announced significant decrease in LPG price and slashed it by whopping Rs17.73 (or 7.6%) per kilogramme, owing to steep decline in Saudi Aramco-CP, for the month of August. Following the reduction of Rs17.73 per kilogramme, the LPG price has been reduced to Rs215.37 per kg from the existing Rs233.10 per kg, according the notification issued by the OGRA here.
The LPG producer price is linked with Saudi Aramco-CP and US dollar exchange rate. As compared to previous month Saudi Aramco-CP has decreased by 9.8%. The average dollar exchange rate has slightly increased by 0.38% resulting to decrease in LPG consumer price by Rs17.73 per kg, while the cost of 11.8 kg domestic cylinder will go down by Rs209.24 (7.6%), said a notification issued by Oil and Gas Regulatory Authority here Thursday.
The rate of a 11.8kg domestic LPG cylinder has been reduced by
Rs209.24. The new price for a domestic cylinder is now set at Rs2,541.36
compared to the previous price of Rs2,750.60.While the price of a
45.4-kilogramme commercial cylinder will go down by Rs 804.942 to Rs 9,777.798
as compared to the current Rs10,582 during month of July.
The regulator determined the producer price of LPG, assuming a composition of 40 percent propane and 60 percent butane, to be Rs142,847.32 per tonne. This price includes an excise duty of Rs85 per tonne. Consequently, the total producer cost for an 11.8 kg cylinder amounts to Rs1,685.60. Before the imposition of an 18 percent general sales tax (GST), and after imposition of petroleum levy of Rs4,669 per tonne the producer price would have been Rs147,516.32 per tonne, resulting in a price of Rs1,740.69/11.8kg cylinder.
The OGRA has further calculated a maximum producer price of Rs174,069.26 per tonne (including GST) or Rs2,054.02 per 11.8kg cylinder. The marketing, distribution, and transportation margins have been set at Rs35,000 per tonne, comprising a marketing margin of Rs17,000 per tonne, a distribution margin of Rs10,000 per tonne, and a transportation margin of Rs8,000 per tonne, resulting in a total margin of Rs413 per cylinder.
Additionally, consumers are taxed with an 18 percent GST of Rs6,300 per tonne or Rs74.34 per 11.8kg cylinder, on the marketing and distribution margin of Rs35,000 per tonne. The maximum LPG consumer price will be Rs215,369.26 per tonne or 2,541.36 per 11.8kg cylinder.
The maximum LPG price will be Rs 215.37 per kg. The new prices will be in
effect from Friday, August 1, 2025. Notably for month of June and July also,
the OGRA had slashed the price of LPG by Rs4.62 and Rs7.43 per kilogram
respectively.
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