Government Reduces LPG Prices for November 2025
The federal government has announced a reduction in the price of liquefied petroleum gas (LPG) by Rs5.88 per kilogramme, representing a 2.83 percent decrease, for November 2025. According to a notification issued by the Oil and Gas Regulatory Authority (OGRA), the revised LPG price now stands at Rs201.60 per kilogramme, down from Rs207.49 per kilogramme in October.
The LPG producer price is directly linked to the Saudi Aramco-CP index and the US dollar exchange rate. Compared to the previous month, the Saudi Aramco-CP index has dropped by 3.52 percent. Additionally, the average dollar exchange rate has decreased by 0.15 percent, contributing to the overall decline in the LPG consumer price. The total reduction in the consumer price is Rs69.44 per 11.8 kg cylinder, which equates to a 2.83 percent decrease. This translates to a per kilogramme reduction of Rs5.88, as stated in the OGRA notification.
Impact on Cylinder Prices
Following the price reduction, the rate for an 11.8 kg domestic LPG cylinder will decrease by Rs69.44. The new price for this size of cylinder is now set at Rs2,378.89, compared to the previous price of Rs2,448.33 in October. Similarly, the price of a 45.4 kg commercial cylinder will drop by Rs266.952 to Rs9,152.64, down from Rs9,420.5 in October. These revised prices will take effect from today, November 1.
Despite the official reduction, the OGRA-nominated prices are not being reflected in actual sales across the country. Both LPG production plants and retail shops are selling LPG at significantly higher prices than the notified rate. Chairman of the LPG Association, Irfan Khokar, highlighted that LPG is not available at the government-mandated rate at any plant in Pakistan. Retailers are charging around Rs330 per kg, far exceeding the notified rate of approximately Rs201 per kg.
In the Federal Capital, Islamabad, LPG is still being sold at Rs330 per kg, while prices are even higher in the hilly regions of the country. This discrepancy between the official price and the actual market price raises concerns about the effectiveness of the policy.
Historical Context and Consumer Concerns
Notably, in October 2025, OGRA had also reduced the price of LPG by Rs6.70 per kilogramme, marking a 3.13 percent decrease. However, similar to the current situation, the benefits of this reduction were not fully realized by consumers due to the high prices charged by retailers.
This ongoing issue highlights the need for stricter enforcement of pricing regulations and better monitoring of LPG distribution channels. Consumers continue to face challenges in accessing affordable LPG, despite government efforts to lower prices.
Key Factors Influencing LPG Prices
- Saudi Aramco-CP Index: A key factor in determining the producer price of LPG. A 3.52 percent decrease in this index contributed to the overall price reduction.
- US Dollar Exchange Rate: A 0.15 percent decline in the average exchange rate further supported the reduction in LPG prices.
- Market Practices: Despite official reductions, LPG is being sold at much higher prices in both production and retail sectors, raising questions about compliance and enforcement.