Pakistan raises the price of compressed liquefied petroleum gas

According to Pakistani media reports, in order to improve the domestic supply of LPG, the Pakistani government recently reached an agreement with the All Brazil Gas Association (APCNGA) to increase the price of compressed natural gas (CNG) by 7 percentage points to reduce the spread with gasoline. The agreement will be submitted within 15 days for approval by the Baroque Economic Coordinating Committee (ECC).

The agreement stipulates that the retail price of LPG imported from all LPG supply stations in urban and rural areas shall not exceed Rs. 1,450/11.8 kg (US$1, 86 Rs), or about Rs 123 per kg. The Pakistani-controlled Kashmir region and the federal tribal areas are subject to high transportation costs. The retail price of imported LPG can be increased by 30 rupees per 11.8 kilograms.

OGRA also stipulated that the maximum retail price of local LPG production in Pakistan shall not exceed Rs. 1239 per 11.8 kg, or 105 rupees per kg. OGRA requires Pakistani LPG manufacturers to provide invoices and indicate whether the LPG is imported or produced locally when distributing products.

At present, Pakistan's CNG price is equivalent to 48% of the price of gasoline, and the price increase will be equivalent to 55%. Prior to this, the Ministry of Petroleum proposed to raise the CNG price by 17 percentage points, after many discussions to finalize the current plan.