Third Consecutive LPG Price Hike in October 2023

Jawad

02 Oct 2023

261

Third Consecutive LPG Price Hike in October 2023

In October 2023, the federal government has approved yet another significant increase in the price of Liquified Petroleum Gas (LPG), marking the third consecutive month of LPG price hikes.

Reasons Behind the Continuous LPG Price Increases

The Oil and Gas Regulatory Authority (Ogra) attributes the persistent surge in LPG prices to two main factors: the devaluation of the Pakistani rupee against the US dollar and an upward trend in the prices of Propane and Butane, the primary components of LPG, by Saudi Aramco.

LPG Price Hike for October

Starting from October 1, 2023, the per-kilogram price of LPG is set to experience a significant increase, rising to Rs261 from its previous price of Rs240 in September 2023.

Petroleum Price Reduction

Interestingly, on the same day as the LPG price hike, the caretaker government has taken a different approach by reducing the prices of petrol and diesel for the next two weeks. This marks the first decrease in two-and-a-half months.

Reasons Behind the Petroleum Price Reduction

The Ministry of Finance justifies this reduction in petroleum prices by pointing to the appreciation of the Pakistani rupee and a global decline in petroleum product rates. This decision is in line with the government's response to international fluctuations in petroleum product prices and improvements in the exchange rate.

Impact on Consumer Prices

Following the reduction, petrol will be available at Rs323.38 per liter, and diesel at Rs318.18 per liter. Additionally, the government has also lowered the rate of kerosene oil by Rs7.53 per liter to Rs237.28 and light diesel oil by Rs7.77 per liter to Rs212.45.

The last decrease in these commodity prices occurred in mid-July, demonstrating the government's efforts to mitigate the economic impact on the general population.

What are your thoughts on this recent LPG price hike? Please share your opinions in the comments below!

LPG Price Hike Energy Costs Fuel Price Increase Government Policies Petroleum Product Rates Economic Impact Pakistan Economy Consumer Prices Oil and Gas Industry Exchange Rate Fluctuations

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