Ogra cuts LPG prices by Rs4.62 for June amid crackdown on illegal fuel trade

Ogra cuts LPG prices by Rs4.62 for June amid crackdown on illegal fuel trade

Business

Rs54.6 reduction per cylinder as govt moves to digitally track fuel and curb smuggling

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ISLAMABAD (Web Desk) - The Oil and Gas Regulatory Authority (Ogra) on Saturday announced a reduction in the price of liquefied petroleum gas (LPG) by Rs4.62 per kilogram, or 1.88%, for the month of June.

According to the official notification, the price of an 11.8kg domestic LPG cylinder has been slashed to Rs2,838.31, down from Rs2,892.91 in May — a decrease of Rs54.60 per cylinder. The per-kilogram price for consumers has also been reduced from Rs245.16 to Rs240.53.

Ogra explained in a separate press release that the LPG producer price is influenced by Saudi Aramco’s Contract Price (CP) and the prevailing US dollar exchange rate. For June, the Saudi Aramco CP dropped by 2.67%, while the dollar exchange rate saw a marginal increase of 0.35%, leading to the overall decline in consumer prices.

Meanwhile, the federal government has introduced a landmark legislative reform in the National Assembly aimed at combating petroleum smuggling and adulteration. The Petroleum (Amendment) Act, 2025, tabled by Petroleum Minister Ali Pervaiz Malik, proposes amendments to the 1934 Petroleum Act. The bill includes provisions for digital tracking of petroleum products from import and production to retail sales.

The draft law empowers authorities to take strict action against the illegal transportation, decantation, and sale of petroleum products, and targets unauthorized petrol pumps. The government estimates annual losses of Rs300–500 billion due to smuggling and adulteration, which also damage vehicle engines and the environment.

In a related crackdown, authorities sealed eight illegal LPG cylinder sales units earlier this month and imposed fines of Rs5,000 on each.