LPG Price in Pakistan

What LPG Stands For and What It Is

LPG stands for Liquefied Petroleum Gas. LPG is not natural gas. It is a mix of propane and butane, pressed into liquid form for easy storage and transport. This is what allows LPG to travel in cylinders and tankers instead of pipes. Millions of homes across Pakistan use it for cooking, especially where pipeline gas does not reach.

How OGRA Fixes the LPG Rate Every Month

OGRA fixes the LPG gas price in Pakistan once a month. The Oil and Gas Regulatory Authority bases the rate on the Saudi Aramco Contract Price. This is also called the Platts Arab Gulf benchmark, and it is the international price of LPG in US dollars.

OGRA converts that dollar price using a seven-day average exchange rate from the State Bank of Pakistan. Freight, insurance, the petroleum levy, customs duty, and OMC or dealer margins get added on top. The final number becomes the notified price per kg and per tonne.

For September 2026, OGRA raised the rate by Rs 4.33 per kg. That took the price from Rs 254.32 to Rs 258.65 per kg, effective September 1.

LPG Cylinder Prices for Home and Commercial Use

The LPG cylinder price in Pakistan depends on the cylinder size. Most homes use the 11.8 kg cylinder, often called a 12 kg cylinder. At the current per kg rate, this domestic cylinder costs Rs 3,052.

Commercial users like restaurants, hotels, and small factories mostly use a bigger 45.4 kg cylinder. At the same per kg rate, that cylinder comes to about Rs 11,743. A bigger cylinder means a higher total price, even though the per kg rate stays the same for both.

Why Shops Charge More Than the OGRA LPG Rate

OGRA sets one official rate. Shops and dealers often charge more. The current retail LPG price reported by local sellers is Rs 380 per Kg. This gap comes from a few real costs and a few unfair ones.

1. Transport to remote areas adds cost, since LPG has to move by road in cylinders or bulk tankers.
2. Dealer margins, handling losses, and cylinder refilling add more on top.
3. During shortages, some sellers hold back stock to push prices higher.

OGRA and district authorities call this an artificial shortage. Consumers can complain if a dealer overcharges past the OGRA rate. They can contact OGRA’s complaint cell or the district administration.

Why Winter Pushes LPG Prices Higher

Winter changes how Pakistan uses fuel. Piped natural gas supply drops in many cities once winter starts. Gas gets diverted to power plants, fertiliser units, and heating needs first. Homes with weak Sui gas pressure switch to LPG for cooking instead.

This pushes up demand for LPG right when supply is already tight. Areas without any pipeline network depend on LPG all year. This includes parts of Balochistan, KP, and rural Punjab. Their households feel the price rise the most. Some dealers use this seasonal rush to sell above the notified rate.

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