ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) on Friday notified a reduction in the prices of domestic LPG cylinders by Rs10 per kg in line with the decline in prices internationally with effect from October 1.

The indigenous production of LPG is to meet 50 percent demand and supplement to total need, the government imports the fuel used for cooking purposes.

In a monthly review, the regulator has announced Rs122 reduction on the domestic cylinder and Rs470 on the commercial cylinder for the month. The domestic cylinder is available at Rs2,374 or Rs202 per kg and the commercial cylinder’s official price is Rs9,135.

In the winter plan of the government, LPG cylinders will be used by the Sui Northern Gas Pipeline Company (SNGPL) as the government did not receive imported LNG to meet the growing demand as the spot purchase reached four time higher than the previous winter season due to Ukraine-Russia war. The government will soon introduce and allocate budget to the SNGPL for the installation of LPG Air Mix plan in remote areas.

Another proposal is under consideration to introduce a flat rate in areas of Balochistan where temperature reaches freezing point during winter and Ufs touches 51 percent. Other option is to deliver LPG at subsidized rate.

Copyright Business Recorder, 2022