LPG Price in Pakistan

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

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.

Butane

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.

Production Cost

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.

Calorific Value

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.

Tax Value

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.

Domestic Production

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.

• Burshane
• Fongas
• Caltex Gas
• Pak Gas
• Pearl Gas
• Supergas
• Lifegas
• Unigas
• Mehran LPG
• PEARL GAS
• CHILTAN Gas
• Noor LPG

Uses Of LPG

Motor Fuel

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.

Cooking

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.