The Oil and Gas Regulatory Authority (OGRA) has announced a reduction in liquefied petroleum gas (LPG) prices for January 2025.

According to a notification issued for the New Year, the authority reduced the LPG price by Rs4.02/kg, making the price of an 11.8kg household cylinder Rs47.43 cheaper.

The new prices will take effect in January 2025, with the new price set at Rs250.28/kg. The new price for an 11.8kg LPG cylinder will be Rs2,953.36.

LPG rates are determined through a combination of factors that reflect both domestic and international market conditions. The pricing mechanism typically involves the cost of procurement, which includes the price paid to suppliers and transportation costs to deliver the gas to distribution points.

Moreover, government regulations and taxes play a significant role in setting the final retail price.

Regulatory bodies, such as OGRA, periodically review and adjust prices based on fluctuations in global oil markets, currency exchange rates, and domestic demand and supply dynamics. This ensures that LPG prices remain aligned with current market conditions while also considering the economic impact on consumers.

Moreover, the government is scheduled to announce petrol prices on Tuesday for the next fortnight.

Oil prices were on track to end 2024 with a second consecutive year of losses on Tuesday, but were steady on the day as data showing an expansion in Chinese manufacturing was balanced by Nigeria targeting higher output next year, Reuters reported.

Brent crude futures fell by 7 cents, or 0.09%, to $73.92 a barrel as of 1306 GMT. US West Texas Intermediate crude lost 4 cents, or 0.06%, to $70.95 a barrel.

At those levels, Brent was down around 4% from its final 2023 close price of $77.04, while WTI was down around 1% from where it settled on December 29 last year at $71.65.