LPG falls Rs 50 a kg in Lahore but stays double Ogra rate

Fresh stocks of liquefied petroleum gas have begun arriving in Lahore, cutting the retail price by Rs 50 a kilogram, but consumers are still paying roughly double the rate fixed by the Oil and Gas Regulatory Authority, ARY News reported.

LPG was being sold at Rs 550 a kg even after the reduction, against the government-fixed rate of Rs 279.34 a kg, according to the report. Local dealers said they expected a further significant fall in prices during the day as more supplies reached the city.

The account did not reconcile its own figures: it said the price had earlier soared to Rs 550 a kg, and then that the Rs 50 reduction had brought it to the same Rs 550 level.

Irfan Khokhar, chairman of the LPG Distributors Association, said companies were charging inflated rates and that rising demand for the fuel was being used for illegal profiteering. "There are countrywide reports of selling LPG between Rs 500 to 600 per kilogram," he said.

Khokhar said prices could climb further if supplies are disrupted, and asked how the market could stabilise while the official rate is not enforced. He demanded that black-marketing of LPG be curbed and that those behind it be held accountable.

The gap between the official rate and the market price has been a recurring complaint in the sector, with the regulator's notified figure bearing little relation to what consumers are charged at the cylinder.

The report linked the pressure to gas loadshedding, saying soaring LPG prices have added to the burden on low-income households already coping with a rising cost of living. LPG is the main cooking fuel for households and businesses outside the piped gas network, and in many areas it is used alongside it during shortages.

No timeline was given for when the price cut took effect, and no official confirmation of the prevailing market rate in Lahore was available. It was also not clear from the report whether the fresh supplies came from imports or from local production, or how long the additional stock was expected to last.

Ogra fixes the LPG rate, but enforcement has remained weak, and dealers have previously blamed supply shortfalls and hoarding for prices running well above the notified level.