OGRA sets LPG maximum consumer price at Rs279.34 per kg

Mettis Global reported that the Oil and Gas Regulatory Authority (OGRA) has fixed the maximum LPG consumer price at Rs279,341.49 per metric tonne, or Rs3,296.23 for an 11.8kg cylinder. The new rate took effect on October 1, 2026 and covers every stage of the supply chain for both domestic and imported gas. The notification, dated September 30, 2026, came from OGRA's Executive Director and replaces the notice of August 31, 2026.

The decision rests on Section 6(2)(r) of the OGRA Ordinance, 2002, Rule 18(1) of the LPG Rules, 2001, and clauses of the LPG Policy 2016, drawing on advice from the Petroleum Division of the Ministry of Energy. The build-up begins with a producer price of Rs197,061.08 per tonne, which includes Rs85 per tonne of excise duty but excludes petroleum levy and assumes a 40:60 propane-butane mix. Adding a Rs4,669 levy and 18% GST raises the maximum producer price to Rs238,041.49 per tonne, or Rs2,808.89 per cylinder.

The margins for marketing, distribution and transport total Rs35,000 per tonne, or Rs413 per cylinder, covering Rs17,000 for marketing, Rs10,000 for distribution and Rs8,000 for transport. GST of Rs6,300 on those margins completes the final consumer figure. Because the amount is a cap, producers, marketers and distributors remain free to charge less, as the LPG Policy 2016 permits.