The federal government has given the nod to yet another significant increase in Liquified Petroleum Gas (LPG) price, marking the third consecutive month of LPG price hike for October 2023.
Reasons Behind LPG Price Hike
The Oil and Gas Regulatory Authority (Ogra) attributes the consistent surge in LPG prices to two primary factors: the devaluation of the Pakistani rupee against the US dollar and an increase in the prices of Propane and Butane, the principal components of LPG, by Saudi Aramco.
LPG Price Hike
As of October 1, 2023, the per-kilogram price of LPG will experience a notable increase, reaching Rs261 from its previous Rs240 in September 2023.
Slash in Petroleum Prices
Interestingly, on the same day as the LPG price hike, the caretaker government took a divergent step by reducing the prices of petrol and diesel for the next fortnight. This move marks the first decrease in two-and-a-half months.
– Petrol prices witness a reduction of Rs8 per litre.
– Diesel prices take a cut of Rs11 per litre.
Rationalization by the Ministry of Finance
The Ministry of Finance cited the appreciation of the Pakistani rupee and a global drop in POL rates as reasons for this reduction in petroleum prices. The decision aligns with the government’s response to international variations in petroleum product prices and improvements in the exchange rate.
Impact on Consumer Prices
Post-reduction, petrol will be available at Rs323.38, and diesel at Rs318.18 per litre. Additionally, the government has also reduced the rate of kerosene oil by Rs7.53 per litre to Rs237.28 and light diesel oil by Rs7.77 per litre to Rs212.45.
The last decrease in these commodity prices was observed in mid-July, reflecting the government’s effort to manage the economic impact on the common citizens.
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