LPG Price Crosses Rs500 per Kg in Pakistan: Why It Costs Double the Official Rate

If you are feeling the pinch every time you buy a cylinder for your kitchen, you are not alone. The price of Liquefied Petroleum Gas, the blue cylinder gas millions of Pakistanis use for cooking, has crossed the Rs500 per kilogram mark in major cities like Lahore, Multan, and Karachi.

For an average household, this translates to a staggering financial blow. An 11.8 kilogram domestic cylinder, which is the standard size for most homes, is now burning a hole in the pocket like never before.

Official Rate vs Market Rate: A Huge Gap

To understand the crisis, you have to look at the numbers. There is a massive difference between what the government says you should pay and what shopkeepers are charging.

Rate Type	Price per Kg (Rs)	11.8 Kg Cylinder Price (Rs)
Official OGRA Rate<\/td>	304<\/td>	3,588<\/td>
Market Rate (Actual)<\/td>	500 to 510<\/td>	5,800 to 6,000<\/td>
Difference<\/td>	+196 to +206<\/td>	+2,212 to +2,412<\/td>

Price Breakdown at a Glance

Official Rate: Rs304 per kg

Market Rate: Rs500 to Rs510 per kg

Overcharge per kg: Approximately Rs200

Overcharge per cylinder: Approximately Rs2,500

Why Are You Paying Double? The LPG Mafia Factor

You might be wondering: If the price is fixed at Rs304, why am I paying Rs500? The answer is a mix of global economics and local exploitation.

1. The Global Price Hike (The Official Reason)

OGRA officially increased the price by 35 per cent for April. This is because the international market, specifically the Saudi Aramco CP, saw a 44 per cent rise. Since Pakistan imports a large quantity of LPG, the local price follows the dollar and global trends.

2. The Supply Chain Trap (The Real Problem)

Shopkeepers and distributors are not entirely to blame. They claim that LPG marketing companies are supplying the gas to them at rates as high as Rs480 to Rs490 per kg. If a retailer buys gas for Rs490, he cannot sell it for Rs304. He has to sell it for Rs510 to make a tiny profit.

3. The Mafia Allegations

Consumer groups and even some political voices have alleged that an LPG Mafia has artificially created shortages to drive prices up. It is estimated that over 6,000 metric tons of LPG are sold daily in Pakistan. Even a small overcharge per kilogram translates into billions of rupees in illegal profit for hoarders and price manipulators.

Who Is Getting Hit the Hardest?

Rickshaw Drivers: Many public transporters have switched to LPG because it used to be cheaper than petrol. Now, with LPG hitting Rs500, rickshaw fares have gone up, and drivers are struggling to survive. In cities like Faisalabad, drivers claim they are forced to buy at Rs470 per kg, which eats up all their daily earnings.
Home Cooks: For families that cannot afford expensive electric stoves or face long power outages, LPG is the only option. Cooking a single meal has become a luxury.
Small Businesses: Bakeries, restaurants, and food stalls run on LPG. They have been forced to either reduce portion sizes or increase food prices, adding to the inflation burden.

Is OGRA Taking Action?

OGRA has officially taken strict notice of the overcharging. The authority claims it has started field inspections and asked district administrations to crack down on violators. However, the LPG Distributors Association argues that OGRA is targeting the wrong people, specifically small shopkeepers, while ignoring the big marketing companies who set the high supply prices. Unless the supply price is controlled, the retail price will not come down.

Impact on Daily Life

Sector	Impact	Consequence
Households<\/td>	Cooking cost increased by 60-70%<\/td>	Reduced purchasing power for other essentials<\/td>
Rickshaw Drivers<\/td>	Daily fuel cost doubled<\/td>	Lower daily earnings, fare increases<\/td>
Restaurants and Bakeries<\/td>	Higher operational costs<\/td>	Increased food prices or reduced portions<\/td>
Small Food Stalls<\/td>	Margins completely eroded<\/td>	Risk of closure or price hikes<\/td>

Frequently Asked Questions

What is the current LPG price in Pakistan today?

Officially, it is Rs304 per kg. However, in the open market of Lahore, Multan, and Karachi, it is currently being sold between Rs450 and Rs510 per kg.

Why has LPG become so expensive in April 2026?

The government cites a 44 per cent increase in the Saudi Aramco global price. However, distributors blame the LPG mafia for holding supplies and marketing companies for charging illegal premiums.

How much does an 11.8 kg LPG cylinder cost now?

The official price is Rs3,588. But due to overcharging, citizens are paying between Rs5,300 and Rs6,000 depending on the city.

Is OGRA taking action against overcharging?

OGRA has announced that they are conducting raids against overcharging. However, the LPG Distributors Association says the real issue is the high supply cost from companies, not just the retail shops.

Will LPG prices go down next month?

Experts are not hopeful. The LPG Distributors Association has warned that prices could rise another Rs90 to Rs100 per kg in the coming weeks if the global situation does not improve.

Who controls LPG prices in Pakistan?

The Oil and Gas Regulatory Authority notifies the maximum price every month based on international rates and exchange rates.

The Bottom Line

For now, the average Pakistani is stuck between a rock and a hard place. While the government blames global markets and shopkeepers blame the mafia, the public is paying almost double the legal price just to cook dinner.

If you are buying a cylinder, ask the shopkeeper to show you the price list. If you are paying above Rs304, you are legally being overcharged. But unfortunately, in most cities right now, you have no other option.

Stay tuned for updates as OGRA announces the next monthly review.