Here’s a rewritten version of the article, focusing on uniqueness while preserving all verifiable facts, with a breaking-news lead followed by evergreen content:
Breaking News: LPG Prices Plummet by Rs17.7 per Kilogram as Regulator Adjusts Rates
Islamabad, Pakistan – july 31, 2025 – Consumers will see a critically important reduction in the cost of liquefied petroleum gas (LPG) starting August 1st, as the Oil and Gas Regulatory Authority (Ogra) has announced a price cut of Rs17.7 per kilogram. This marks the third consecutive month of declining LPG prices, bringing further relief to households.
The new consumer price for an 11.8kg LPG cylinder has been set at Rs2,541.36 for august,a notable decrease from the Rs2,750.6 charged in July. Consequently, the maximum consumer price per kilogram of LPG has been fixed at Rs215.37. These revised rates apply to both domestically produced and imported LPG across all supply chain levels. The producer price for an 11.8kg cylinder has also been adjusted downwards to Rs2,054.02.
This latest reduction follows a Rs7.51 per kg decrease announced last month for July, which had brought the price of an 11.8kg cylinder to Rs2,750.6 from Rs2,838.31 in June. Ogra has consistently linked LPG producer prices to the Saudi Aramco Contract price (CP) and the prevailing US dollar exchange rate.The downward trend in LPG prices began in May, with an 11.8kg cylinder costing Rs2,892.91. This was followed by a price of Rs2,838.31 in June and Rs2,750.6 in July, prior to the latest adjustment.
Evergreen Context: Government Levies and petroleum Sector Oversight
The adjustments in LPG prices occur against a backdrop of government revenue collection through various petroleum levies. While the general sales tax (GST) on all petroleum products remains at zero, the government collects approximately Rs98 per litre on both petrol and diesel. This includes a petroleum levy and a climate support levy (CSL) amounting to Rs77.01 per litre on diesel and Rs78.02 per litre on petrol and high-octane fuels, with the CSL alone contributing Rs2.25 per litre.
Additionally, a customs duty of Rs20-21 per litre is levied on both fuels, irrespective of their origin.Distribution and dealer margins add another Rs17 per litre to the final cost.
Petrol and high-speed diesel (HSD) are the primary revenue generators for the government within the petroleum sector, with combined monthly sales ranging between 700,000 to 800,000 tonnes. In contrast, kerosene demand is significantly lower, standing at approximately 10,000 tonnes per month. The government collected Rs1.161 trillion through petroleum levy in the fiscal year 2024-25 and anticipates a 27% increase, projecting Rs1.470 trillion for the current fiscal year.
Global oil prices have seen a slight softening over the past fortnight, attributed to easing regional tensions. This has contributed to a nearly one-third drop in the import premium on petrol, from around $9.70 to $6.75 per barrel.In related news, a parliamentary panel recently voiced concerns regarding the “poor regulatory environment” within the petroleum sector. The panel highlighted a critical oversight issue, noting that nearly half of the estimated 2,000 bowsers involved in LPG transportation are unregistered. Out of these, only 800 are registered with the Department of Explosives, and a mere 247 hold licenses issued by Ogra, indicating a considerable gap in regulatory compliance and safety measures.
