Gas price increased by Rs250, LPG by Rs1.43

ISLAMABAD: The Economic Coordination Committee (ECC) approved an increase in gas price, specifically for captive power plants across Pakistan on Monday.

The decision raised the price of gas by Rs250 per mmbtu (million British thermal units), fixing the new rate at Rs3,000 per mmbtu for these entities. The new gas price increase will be implemented from the on-set of the new fiscal year 2024-25.

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The move comes as part of the government’s efforts to manage energy costs amid economic challenges and fluctuating global energy markets. Captive power plants generate electricity primarily for their own use. They will now incur higher operational expenses due to the revised gas pricing structure.

However, the notification stated that gas prices will remain unchanged for other sectors, including domestic consumers, commercial establishments, and industrial units. The decision is aimed at maintaining stability and to prevent any immediate impact on consumers and businesses reliant on natural gas for daily operations.

Increase in LPG prices

Meanwhile, the Oil and Gas Regulatory Authority (OGRA) issued a notification announcing an increase in the price of domestic LPG cylinders.

Effective immediately, the new price for an 11.8 kg domestic cylinder is set at Rs. 2,769.66, up from Rs. 2,768.23 in June.

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The price of LPG per kg also rose by almost Rs. 0.12 to Rs. 234.72.

Sure! Here’s a simplified version:

Liquefied Petroleum Gas (LPG) is a fuel used for heating, cooking, and powering vehicles. It consists mainly of propane and butane.

LGP is extracted during oil refining and natural gas processing. It is stored under pressure as a liquid, making it convenient for transportation and storage. The fuel is valued for its efficiency, portability, and relatively lower environmental impact compared to other fuels.

Compared to natural gas, LPG’s portability allows it to be readily transported and stored in tanks, making it accessible in remote locations. It has higher energy content per unit volume and also burns cleaner than traditional fuels, emitting fewer pollutants.

As a result, LPG is often praised as a better and more environmentally friendly energy alternative compared to traditional fuels.