What will be the cost of an 11.8kg household cylinder?
The Oil and Gas Regulatory Authority (OGRA) has revealed a reduction in liquefied petroleum gas (LPG) prices for January 2025.
In a notification issued for the New Year, OGRA lowered the LPG price by Rs 4.02 per kilogram, resulting in a Rs 47.43 decrease in the cost of an 11.8kg household cylinder. The new price will be set at Rs 250.28 per kilogram, bringing the price of an 11.8kg LPG cylinder to Rs 2,953.36.
LPG prices are determined by a range of factors, including both domestic and international market conditions. The pricing mechanism takes into account the cost of procurement, transportation expenses, and government regulations and taxes, which play a key role in setting the final retail price.
OGRA periodically reviews and adjusts LPG prices based on fluctuations in global oil markets, currency exchange rates, and domestic supply and demand conditions. This ensures that LPG prices remain in line with current market trends while also considering the economic impact on consumers.
Additionally, the government is expected to announce petrol prices for the upcoming fortnight on Tuesday.
Oil prices were set to end 2024 with a second consecutive year of losses, but remained steady on Tuesday. Data indicating expansion in Chinese manufacturing was offset by Nigeria’s plans to boost production next year, according to Reuters. As of 1306 GMT, Brent crude futures had dropped by 7 cents (0.09%) to $73.92 a barrel, while US West Texas Intermediate crude fell by 4 cents (0.06%) to $70.95 a barrel. At these levels, Brent was down approximately 4% from its final 2023 closing price of $77.04, and WTI was down about 1% from $71.65 on December 29.
