Tag: LPG

  • OGRA reduces LPG price to Rs234 per kg amidst cost-cutting measures by OGDCL

    OGRA reduces LPG price to Rs234 per kg amidst cost-cutting measures by OGDCL

    The Oil and Gas Regulatory Authority (OGRA) has announced a reduction in the price of Liquefied Petroleum Gas (LPG), providing relief to consumers who depend on LPG.

    According to a recent notification, LPG prices have been cut by Rs3.87, bringing the cost down to Rs234 per kilogramme. This new rate is effective immediately.

    This development follows a significant cost reduction in production by the Oil and Gas Development Company (OGDCL), attributed to the arrival of three ships carrying imported LPG.

    The increased supply has enabled OGDCL to lower production costs, subsequently leading to the reduced consumer prices.

    In a related development, the prices of petrol and diesel in Pakistan are also anticipated to drop from June 1. According to sources, petrol prices are expected to decrease by Rs5 per litre, while diesel prices may see a reduction of Rs4 per litre.

    The Ministry of Finance will announce the new rates after consulting with the Prime Minister.

    The OGRA summary proposing the price reductions will be submitted to the Petroleum Division by May 31st, sources added.

    This move is part of a broader strategy to alleviate the financial burden on the public by ensuring affordable fuel prices amidst fluctuating global oil markets.

  • Pakistan’s weekly inflation reaches record high of 48.35%

    Pakistan’s weekly inflation reaches record high of 48.35%

    According to data from the Pakistan Bureau of Statistics (PBS), the Sensitive Price Indicator (SPI) has risen by 1.05 per cent to reach a record high of 48.35 per cent year-on-year for the week ending May 4. The SPI for the aforementioned week was recorded at 254.84 points, compared to 252.2 points the previous week.

    Of the 51 monitored items, 30 items experienced an increase in average price, while 9 items decreased, and 12 items remained unchanged during the week.

    The items that experienced an increase in average prices on a week-on-week (WoW) basis were chicken (8.91 per cent), potatoes (3.99 per cent), powdered milk (3.81 per cent), pulse gram (1.96 per cent), pulse masoor (1.83 per cent), eggs (1.81 per cent), mutton (1.71 per cent), pulse mash (1.58 per cent), cooked daal (1.36 per cent), and bread (1.13 per cent). The non-food items that saw an increase were gents sponge chappal (58.05 per cent), gents sandal (33.36 per cent), ladies sandal (14.31 per cent), and washing soap (1.27 per cent).

    On the other hand, a decline was seen in the prices of onions (16.69 per cent), garlic (3.44 per cent), tomatoes (3.41 per cent), diesel (1.70 per cent), mustard oil (0.99 per cent), LPG (0.96 per cent), cooking oil 5 litre (0.40 per cent), and vegetable ghee 2.5kg & 1kg (0.10 per cent each).

    Monitored Items Average Price Increase/Decrease
    Chicken +8.91%
    Potatoes +3.99%
    Powdered Milk +3.81%
    Pulse Gram +1.96%
    Pulse Masoor +1.83%
    Eggs +1.81%
    Mutton +1.71%
    Pulse Mash +1.58%
    Cooked Daal +1.36%
    Bread +1.13%
    Onions -16.69%
    Garlic -3.44%
    Tomatoes -3.41%
    Diesel -1.70%
    Mustard Oil -0.99%
    LPG -0.96%
    Cooking Oil 5L -0.40%
    Vegetable Ghee 2.5kg -0.10%
    Vegetable Ghee 1kg -0.10%
  • Weekly inflation increases more than 38% as prices of petrol and food items hit the roof

    Weekly inflation increases more than 38% as prices of petrol and food items hit the roof

    According to the latest data released by the Pakistan Bureau of Statistics (PBS), the Sensitive Price Indicator (SPI) based inflation for the week ended February 16, 2023, registered an increase of 2.89 per cent. The rise in inflation can be attributed to an increase in the prices of both food and non-food items.

    Food Items that saw an increase in prices

    The following food items saw a significant increase in prices during the week ended February 16, 2023:

    • Cooking oil 5 litre (8.65 per cent)
    • Vegetable ghee 1kg (8.02 per cent)
    • Bananas (8.01 per cent)
    • Chicken (7.49 per cent)
    • Vegetable ghee 2.5 kgs (6.76 per cent)

    Non-food items that saw an increase in prices

    The following non-food items saw an increase in prices during the week ended February 16, 2023:

    • Petrol (8.82 per cent)
    • Diesel (6.49 per cent)
    • Cigarettes (6.18 per cent)

    Year-on-Year Trend

    The year-on-year trend depicts an increase of 38.42 per cent mainly due to an increase in the prices of the following items:

    • Onions (433.44 per cent)
    • Chicken (101.86 per cent)
    • Diesel (81.36 per cent)
    • Eggs (81.22 per cent)
    • Rice irri-6/9 (74.12 per cent)
    • Rice basmati broken (73.05 per cent)
    • Petrol (69.87 per cent)
    • Moong (67.98 per cent)
    • Bananas (67.68 per cent)
    • Tea Lipton (63.89 per cent)
    • Pulse gram (56.93 per cent)
    • Bread (55.36 per cent)
    • Maash (53.42 per cent)
    • LPG (52.68 per cent)
    • Cigarettes (50.02 per cent)

    On the other hand, the prices of tomatoes (65.30 per cent), electricity for q1 (7.50 per cent), and chillies powdered (7.42 per cent) saw a decrease during the same period.

    SPI for the week under review

    The SPI for the week under review in the above-mentioned group was recorded at 234.77 points against 228.17 points registered in the previous week. Out of 51 items, prices of 34 (66.67 per cent) items increased, 05 (9.80 per cent) items decreased and 12 (23.53 per cent) items remained stable.

    SPI for different consumption groups

    The SPI for the consumption group up to Rs17,732, Rs17,732-22,888, Rs22,889-29,517, Rs29,518-44,175 and above Rs44,175 consumption group increased by 2.45 per cent, 2.73 per cent, 2.79 per cent, 2.88 per cent, and 2.94 per cent, respectively.

    Items that recorded an increase in average prices

    The following items recorded an increase in their average prices during the week over previous:

    • Petrol super (8.82 per cent)
    • Cooking oil Dalda or other similar brand (sn), 5 litre tin each (8.65 per cent)
    • Vegetable ghee Dalda/Habib or other superior quality 1 kg pouch each (8.02 per cent)
    • Bananas (8.01 per cent)
    • Chicken (7.49 per cent)
    • Vegetable ghee Dalda/Habib 2.5 kg tin each (6.76 per cent)
    • Hi-speed diesel (6.49 per cent)
    • Cigarettes Capstan (6.18 per cent)
  • OGRA jacks up LPG price by Rs60 per kg

    OGRA jacks up LPG price by Rs60 per kg

    The Oil and Gas Regulatory Authority (OGRA) raised the cost of liquefied petroleum gas (LPG) by Rs60 per kilogramme after a hike of Rs35 in petrol prices.

    The price of liquefied petroleum gas (LPG) has increased by Rs60 per kg to Rs264 per kg, according to a statement from the OGRA.

    The price of a domestic LPG cylinder has gone up by Rs703 and a commercial cylinder by Rs2,706 following the latest price revision. Domestic cylinders will now be sold at Rs3,115 and commercial cylinders at Rs11,984.

    In a statement, LPG Industries Association of Pakistan Chairman Irfan Khokhar lambasted the regulatory authority and called it “mafia.” “Liquefied petroleum gas was now out of reach of consumers after the historic increase in prices,” he said.

    It is pertinent to mention here that the federal government on January 29 announced raising the prices of gasoline and diesel by Rs35 per litre.

    In a televised address, Ishaq Dar said that an 11 per cent increase was witnessed in the prices of petroleum products in the international market. Dar further announced that the prices of kerosene oil and light diesel oil have been increased by Rs18 per litre.

    After the latest round of hikes, petrol is currently priced at Rs249.80, diesel at Rs262.80, kerosene oil at Rs189.83, and light diesel at Rs187.

  • OGRA hikes LPG price by Rs11.79 per kg for December

    OGRA hikes LPG price by Rs11.79 per kg for December

    The Oil and Gas Regulatory Authority (OGRA) has increased the prices of Liquefied petroleum gas (LPG) by Rs11.79 per kilogramme for this month.

    The price of a domestic cylinder (11.8 Kg) has gone up by Rs139 while the price of a commercial cylinder increased by Rs535, according to a notification from OGRA.

    As per the new pricing, the domestic cylinder will now be available at Rs2,548 and the commercial cylinder will be available at Rs9,804.

    LPG Prices OGRA

    The federal government earlier announced to keep the prices of petrol and diesel unchanged for the next 15 days, despite a global reduction in oil prices.

    Finance Minister Ishaq Dar announced to keep the prices of petrol and high-speed diesel unchanged for the next 15 days.

    However, Dar announced a reduction of Rs10 per litre in the price of kerosene oil and Rs7 per litre in light diesel.

  • Govt to spend Rs40 billion to uplift 20 backward districts

    Govt to spend Rs40 billion to uplift 20 backward districts

    In order to initiate rehabilitation projects across 20 backward and underprivileged districts over the course of 60 months in four provinces, the Ministry of Planning has announced a special development project worth Rs40 billion.

    The federal and provincial governments are expected to split the project’s estimated cost 50:50. The project has received approval from the Planning Minister Ahsan Iqbal-led Central Development Working Party (CDWP).

    According to DAWN, the project has already been given a budget of Rs18 billion for PSDP 2022–23. Eleven districts from Balochistan, five from Sindh, three from Khyber Pakhtunkhwa, and one from Punjab are among the 20 districts that were chosen based on Multidimensional Poverty Index (MPI) ratings. The recent flood calamity, notably in Balochistan and Sindh, has severely damaged many of these districts.

    Sherani, Kohlu, Jhal Magsi, Barkhan, Killa Abdullah, Zhob, Musakhel, Dera Bugti, Jaffarabad, Ziarat, and Killa Saifullah are among the 11 districts in Balochistan. Sujawal, Thatta, Tharparkar, Kashmore, and Badin are five in Sindh; Torghar, Shangla, and North Waziristan are three in Khyber Pakhtunkhwa; and Rajanpur is one district in Punjab.

    The tentative interventions in these districts will be in the areas of connectivity via roads, access to broadband services and the internet, solarization of off-grid areas, establishment of LPG terminals, development of the agri-livestock and mineral value-chain, tunnel framing, dairy farming, fish farming, etc., establishment of common border markets, investments in skill development, and student scholarships.

    Additionally, the provincial and federal governments will choose sub-projects based on a thorough analysis of the requirements of the marginalised population in their respective regions. These initiatives will be approved by the relevant federal and provincial forums. Steering committees at the federal and provincial levels will oversee the sub-projects.

    “This is the first of its kind project in the economic history of Pakistan where the federal government is undertaking a national intervention to uplift the poorest districts and address the disparity in economic development,” said the planning minister in a statement released on Saturday.

    With the assistance of the UNDP, the MPI survey was finished in 2017–18, allowing for the first time ever to map poverty at the district level nationwide.

    Through targeted investments in infrastructure and the development of human capital in the nation’s poorest regions, the project’s principal goal is to promote inclusive growth and equitable development. One of the main cornerstones of the proposal is investments in human capital development, especially for young people and women.

    According to Pakistan’s MPI estimation for 2017–18, 38.3 percent of Pakistan’s population (87,089,000 people in 2020) will be multidimensionally poor, and a further 12.9 percent will be vulnerable to multidimensional poverty (29,353,000 people in 2020).

    The initiative seeks to significantly contribute to eliminating regional inequality and enhancing national integration and peace in the nation in line with Pakistan Vision 2025 and the Global Agenda for Sustainable Development Goals 2030.

    Prime Minister Shehbaz Sharif’s Youth Development Program, which the project is a part of, was introduced last month.

  • Domestic LPG cylinder now costs Rs2,475 after an increase of Rs120

    Domestic LPG cylinder now costs Rs2,475 after an increase of Rs120

    The burden on the general public, who were already suffering from inflation, rising oil and food costs, has increased as a result of another hike in the price of liquefied petroleum gas (LPG).

    Following the increase of Rs10 per kilogramme, LPG is now priced at Rs210 per kilogramme nationwide.

    Moreover, commercial LPG cylinders will now be sold at Rs9,532, up Rs455 while domestic (11.8 kg) LPG cylinders are now priced at Rs2,475, up Rs120.

    According to the chairman of the LPG Association, the commodity’s price is declining on the international market but rising in Pakistan. He requested that the administration take note of the current gas shortage.

    People who now use LPG cylinders residing in new or developing housing communities without Sui gas connections will be impacted by this price increase.

    The frequent announcements of hikes have made life difficult for those with modest incomes. Along with rising LPG prices, many people are having trouble utilising their own vehicles because gasoline prices have skyrocketed.

  • OGDCL confirms gas discovery near Ghotki, Sindh

    OGDCL confirms gas discovery near Ghotki, Sindh

    On Wednesday, the Oil and Gas Development Company Limited (OGDCL) announced the finding of gas from an exploration well near Ghotki, Sindh.

    “The joint venture (JV) of Guddu Block comprising Oil & Gas Development Company Limited as an operator (70 per cent), SPUD Energy PTY Limited (SEPL) (13.5 per cent), IPR Transoil Corporation (IPRTOC) (11.5 per cent), and Government Holdings (Private) Limited (GHPL) (5 percent) has discovered Gas from an exploratory well namely Umair South East # 01, which is located in District Ghotki, Sindh,” the company stated in a notice.

    The Umair South East # 01 well, according to OGDCL, was spudded on May 9, 2022, as an exploration well to investigate the hydrocarbon potential of the Pirkoh Formation and Habib Rahi Limestone (HRL) to a projected depth of 785m.

    “Based on the interpretation of wireline logs, successful Drill Stem Test-1 in HRL tested 1.063 million standard cubic feet per day (mmscfd) gas through choke size 32/64” at 210 pounds per square inch (PSi) Well Head Flowing Pressure (WHFP)”.

    The finding of Umair South East-1 is the outcome of Guddu Joint Venture Partners’ aggressive exploration approach, according to the Pakistani oil and gas business.

    “It has opened a new route and will favourably contribute to alleviating energy demand and supply gaps from indigenous resources, while also adding to OGDCL’s and the country’s hydrocarbon reserves base,” it said.

    The discovery comes at a fortunate time for Pakistan, which has recently experienced huge power outages and a gas scarcity.

    Mari Petroleum Company Limited (MPCL) discovered gas/condensate earlier this month in the Bannu West-1 ST-1 Exploration Well, which was drilled in the Bannu West Block in North Waziristan, Khyber Pakhtunkhwa.

  • OGRA slashes LPG prices by Rs13 per kilogram

    OGRA slashes LPG prices by Rs13 per kilogram

    The Oil and Gas Regulatory Authority (OGRA) has announced a Rs13 per kilog price cut for liquefied petroleum gas (LPG).

    The cost of an LPG household cylinder has been decreased by Rs155, according to a notification released today. Under the revised tariffs, it will be offered for Rs2,581.35, which includes the sale of a commercial cylinder for Rs9,931.65.

    Chairman of the LPG Distributors Association Pakistan, Irfan Khokhar, commented on the matter, claiming that LPG is 45 per cent cheaper than petrol and diesel at present pricing.

    If the government focuses on the sector, he claims that LPG prices can be decreased by another 60 to 65 per cent.

    This is somewhat good news, as many house owners in developing housing societies lack access to Sui Gas connections and rely on LPG cylinders, which are offered at exorbitant costs. The recent price reductions may help consumers cope with the effects of inflation.

    It is important to note that LPG is an alternative and fuel that is mostly utilised for cooking, heating, and lighting especially in rural and hilly sections of the country where natural gas pipelines are not available.

  • 40-50 per cent hike expected in gas tariff

    40-50 per cent hike expected in gas tariff

    The government plans to hike the system gas tariff by up to 50 per cent as part of its efforts to gain access to the International Monetary Fund (IMF) bailout.

    The Ministry of Energy anticipates the Oil and Gas Regulatory Authority (OGRA) determining the revenue requirement for the coming fiscal year in June. As per The News, which cited sources, the tariff increase will take effect on July 1, 2022.

    Sui Southern Gas Company Limited (SSGC) and Sui Northern Gas Pipelines Limited (SNGPL), according to an Energy Ministry official, have suffered massive combined losses of Rs550 billion in recent years.

    Both are losing money since the system gas rate has not been raised in a long time. SNGPL is expected to lose Rs350 billion, while SSGC is expected to lose roughly Rs200 billion.

    OGRA will now calculate the system gas tariff under the modified OGRA statute. The IMF has encouraged the government to ensure that gas firms do not lose money as a result of the gas tariff’s stagnation, as well as to follow the modified OGRA law in its entirety.

    It’s worth noting that the government raised the price of petroleum goods by Rs30 per liter last week after the IMF stated that the bailout package would not be resumed unless the country ended petroleum product subsidies.