In recent inflation, the prices of numerous things have increased to a great extent. Although the government determines the price increase according to the international market, Pakistan has recently suffered extreme inflation. In such a tense situation, LPG is one of the most prominent things to have high prices.
Diesel, petrol, and LPG are a few most common things whose prices increased significantly. Though the prices vary daily because of the dollar’s rate in the international market, some people are unaware of recent LPG prices in Pakistan. If you want to know the LPG price details, the following article can help you in multiple ways.
What Is LPG?
Some individuals assume CNG and LPG are the same, but this is untrue. CNG is the compressed natural gas used for multiple purposes, mainly for vehicles. As clear from its name, it is a natural gas composed of methane.
On the contrary, LPG is a liquefied petroleum gas. This flammable gas is a mixture of hydrocarbon gasses, including propane, propylene, butylene, isobutane, and n-butane. Additionally, this gas is an important part of different heating and cooking appliances and vehicles.
How Is LPG Measured?
Every substance has a specific measuring unit, making it easy for a person to measure its quantity, length, or density. The same is the case with the liquefied petroleum gas.
Most gasses are measured through a gas meter. A gas meter is a flow meter that plays a significant role in measuring the volume of a gas. Initially, I thought LPG had the same unit for everything, but I was wrong. Since it has multiple uses, its volume measuring unit differs.
LPG has distinguishing properties from other gas types. Hence, one can measure it through volume, weight, quantity, pressure, etc. That is why the measuring unit differs.
If LPG is sold in a cylinder, you must measure it in weight. If it is stored in vessels, it is measured in tonnes. In contrast, it is measured in volume for temperature changes. Now the question arises, what is the most common measuring unit for LPG?
Since it is mostly sold in cylinders for vehicles in Pakistan, LPG’s measuring unit is Kg. Hence, its prices increase per Kg.
Who Decides LPG Price In Pakistan?
As I stated earlier, the prices of such substances vary according to the international market. Hence, an LPG company cannot decide its price according to its choice.
Instead, the Oil And Gas Regulatory Authority plays a vital role in managing these substances’ prices. It is a government department that manages the prices of petrol, diesel, CNG, and LPG. OGRA decides the price for LPG and is then implemented in the local market.
The following details contain LPG’s recent price as of 27th June 2023.
LPG Rate By OGRA
- LPG Per Kg: PKR 210
- Domestic Cylinder of 11.8 Kg: PKR 2,480
- Commercial Cylinder of 45.4 Kg: PKR 9,540
LPG Rate In the Market
- LPG Per Kg: PKR 245
- Domestic Cylinder of 11.8 Kg: PKR 3,300
- Commercial Cylinder of 45.4 Kg: PKR 12,000
Factors Affecting The Price Of LPG Price In Pakistan
In the past months, the LPG price in Pakistan has been through a huge surge. On the 1st of June 2023, the Oil And Gas Regulatory Authority slashed these prices to help people fulfill their household necessities in case of gas shortage.
The LPG Industry Association and OGRA claim to reduce these prices further to make their availability easier for people. Now the question is, what factors affect the price of LPG in Pakistan?
As I stated, the surge in the price of petroleum, diesel, CNG, and LPG is because of increased taxes and Dollar’s rate in the international market. Recently, the Pakistani currency has risen against the Dollar. Therefore, Pakistan faces a decrease in the prices of certain things.
Types Of LPG
As I stated earlier, LPG is composed of numerous hydrocarbon gasses. Based on hydrocarbon gasses, LPG has different types.
The two most prominent types of LPG are Propane and Butane. Furthermore, Butane has two other types: “n” and “iso.”
Propane is one of the best alternative fuels for different propane vehicles. The three-carbon alkane compound is colorless and odorless. It is a byproduct of natural gas.
The main uses of Propane include water heating, cooking, refrigeration of food, clothes dying, and power farms and industrial equipment.
It is also a type of hydrocarbon gas. Butane is an ideal option for fuels, portable stoves, heating fuels, and as a refrigerant.
Butane has two other types, known as n-butane and iso-butane. Though they both look similar, they have a different formula.
N-butane is the basic type of Butane, while iso-butane is the isomer of Butane. Moreover, both types of Butane are present in LPG.
Why Is LPG Cheaper Than Petrol?
You must wonder why LPG is cheaper than petrol from the above price table. The same question arose in my mind when I compared their prices. If you are curious about the factors that make LPG cheaper than petrol, the following details benefit you.
One of the many reasons LPG is better than other substances is that it is environmentally friendly and the best alternative to natural gas. Besides positively affecting the environment, it is much cheaper than petroleum.
On average, LPG is around 30 to 33 percent cheaper than petrol in most countries. Factors that might affect its price are the following.
Though LPG’s production varies in every country according to its economy and LPG markets, LPG’s production cost is cheaper than petroleum in most countries. There is not much difference in their production cost, but LPG has a slightly cheaper production cost.
The calorific value is the energy present in food or fuel. LPG, like many other fuels, has a calorific value. LPG has a lower calorific value than petroleum, making it slightly inexpensive.
According to research and study, two-thirds of liters of LPG covers the same distance as a 1-liter petroleum vehicle. Hence, an LPG vehicle covers fewer miles than a petroleum vehicle.
As a Pakistani citizen, you might have noticed that the tax value on LPG is comparatively less than on petrol. Therefore, the tax value is one factor that makes LPG cheaper than petrol.
The production of LPG depends on oil refineries and natural gas reservoirs. Countries with more reservoirs and oil refineries have plenty of LPG. Therefore, LPG prices in such countries are much lower than petrol.
Countries like Pakistan, with few oil refineries and natural gas plants, must take different steps to reserve or import LPG from other states. Hence, in such countries, LPG and petroleum prices differ slightly.
Well-Known LPG Companies In Pakistan
Although OGRA determines the LPG prices, Pakistan has many LPG marketing companies. A few of the most prominent LPG marketing companies are mentioned in the following article.
- Caltex Gas
- Pak Gas
- Pearl Gas
- Mehran LPG
- PEARL GAS
- CHILTAN Gas
- Noor LPG
Uses Of LPG
As I mentioned earlier, LPG is one of the best alternatives to CNG as a motor fuel. LPG is also known as an autogas since it can work as a motor fuel.
You might wonder, what makes LPG the best alternative to petrol and CNG? The answer is its positive effects on the environment and its lower price.
The liquified petroleum gas has non-toxic components and burns cleanly. Though it has many benefits, its energy consumption exceeds other fuel types.
Besides methane or natural gas, many people use LPG in cylinders to cook food during the gas shortage. Due to fewer oil refineries and natural gas plants in Pakistan, LPG is an important component of daily life.
Conversion To Gasoline
Apart from being an ideal alternative to petroleum, it works best as an alternative to gasoline. In other words, you can convert LPG into alkylate and use it as a premium gasoline for clean burning and other purposes.
What is LPG?
LPG stands for liquefied petroleum gas. It differs from CNG and is the best alternative for natural gas. Additionally, it is an essential component of heating appliances, vehicles, etc.
What is the price of LPG in Pakistan today?
LPG price increases per the government’s instructions according to the international market requirements. Today, the LPG price per OGRA’s guidelines is PKR 210 per Kg. In contrast, its price is PKR 245 in the market.
What factors affect LPG prices in Pakistan?
One of the most prominent factors that affect the price of LPG in Pakistan is the imposition of tax. If the taxes increase, the prices increase. Since a government department manages its price, it depends on the Dollar rate and international market requirements.
Why is LPG cheaper than petrol?
Numerous factors can result in the price difference between LPG and petrol. A few of the most common factors include production cost, tax value, domestic production, etc. All these factors are vital in making LPG comparatively cheaper than petrol.
Liquified Petroleum is one of the best alternatives to natural gas. It plays an important role in Pakistan because it is an ideal alternative in the winter due to the country’s gas shortage. It has multiple types that determine its volume, density, and price.
Furthermore, its price increases according to the government’s instructions per the international market requirements. Currently, the LPG price, according to OGRA, is PKR 210 Kg. In contrast, its price is PKR 245 in the local market.