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LPG consumer price drops 3.13% as Saudi Aramco CP declines, effective October 1
BeNewz Report
The Oil and Gas Regulatory Authority (OGRA) has reduced the maximum price of liquefied petroleum gas (LPG) for October 2025, with a Rs79.14 drop per standard 11.8 kg cylinder for consumers, effective from October 1. This marks a 3.13% decrease compared to the rates notified in September.
The revised producer price for October has been set at Rs166,185.64 per metric ton, down from Rs172,892.42 in September—reflecting a decrease of Rs6,706.78. Correspondingly, the price for a domestic 11.8 kg cylinder has dropped from Rs2,040.13 to Rs1,960.99.
For consumers, the maximum retail price has also been revised downward. The new consumer price stands at Rs207,485.64 per ton or Rs2,448.33 per 11.8 kg cylinder, down from Rs214,192.42 per ton or Rs2,527.47 per cylinder in September.
According to OGRA, the downward revision is primarily attributed to a 3.78% reduction in the Saudi Aramco Contract Price (CP), which forms the benchmark for LPG pricing in Pakistan. Although the average US dollar exchange rate registered a minor increase of 0.23% over the same period, it was not significant enough to offset the overall price drop driven by the international benchmark.
The per-kilogram price reduction for LPG consumers has been calculated at Rs6.70, offering some relief to households and small businesses that rely on the fuel for cooking and heating, particularly in off-grid areas where piped natural gas is unavailable.
This adjustment aligns with OGRA’s monthly pricing mechanism, which links local LPG prices with the international market through the Saudi Aramco CP and adjusts for fluctuations in the US dollar exchange rate. The regulatory practice aims to ensure fair pricing while maintaining parity with global supply trends.
LPG remains a critical energy source for millions in Pakistan, particularly during the winter months when demand surges in both urban and rural regions. Any fluctuations in LPG pricing tend to have a direct impact on household budgets and small-scale industries, especially in areas without access to alternative fuels.
In recent months, the government has faced increasing pressure to manage inflation and reduce the cost of living. While global oil and gas markets remain volatile due to geopolitical factors and shifting demand, this month’s reduction offers a reprieve to end users.
OGRA’s price notification for October 2025 is publicly available on its official website and is expected to be implemented by all licensed LPG distributors and retailers nationwide.
The latest revision follows a similar trend in global energy markets, where weakening demand and strategic production shifts have eased prices. The benchmark Saudi Aramco CP often reflects broader OPEC+ decisions and regional market dynamics. A continued decrease could influence November pricing as well, although this will depend on currency trends and global supply conditions.
As the winter season approaches, OGRA is expected to maintain close monitoring of international price movements and exchange rates, as both factors are likely to influence local energy costs. The next pricing cycle for November will be crucial in gauging whether this downward trend is sustained or reversed due to potential global supply constraints.
