Qudsia Bano

Energy prices showed a divergent trend during the week ended January 22, 2026, with gas charges rising sharply on a year-on-year basis while liquefied petroleum gas (LPG) prices declined on a week-on-week basis, according to the latest Sensitive Price Indicator (SPI) data released by the Pakistan Bureau of Statistics (PBS).

The SPI, which measures short-term price movements of 51 essential items across 50 markets in 17 cities, recorded an overall week-on-week decline of 0.48%. However, the energy segment within the basket showed mixed movements, highlighting differences between short- and long-term price trends for utility-related items.

According to PBS data, LPG prices declined by 3.54% during the week under review, making it one of the major non-food items contributing to the weekly reduction in the SPI. The decline in LPG prices provided short-term relief to households that rely on cylinders for cooking and heating, particularly in urban areas where LPG consumption is more prevalent.

In contrast to the weekly decline in LPG prices, gas charges for the first quarter (Q1) recorded a significant year-on-year increase of 29.85%. The rise in gas charges was among the largest year-on-year increases observed across the entire SPI basket, placing it alongside wheat flour and eggs as a major contributor to annual inflation. The sharp increase in gas charges reflects higher utility costs compared to the corresponding week last year.

The year-on-year increase in gas charges played a key role in keeping overall annual inflation elevated. While several food items recorded declines on a year-on-year basis, increases in high-weight non-food items such as gas charges exerted upward pressure on the combined SPI, which showed a year-on-year increase of 4.18% for the week ended January 22, 2026.

Fuel prices showed relatively modest year-on-year movements compared to gas charges. PBS data indicate that petrol prices declined by 0.95% compared to the same week last year, while high-speed diesel prices were down by 1.27% on a year-on-year basis. These marginal declines provided a limited offset to the substantial increase recorded in gas charges.

The mixed performance of energy items highlights the structural difference between regulated utility charges and market-driven fuel prices. While LPG prices can fluctuate on a shorter-term basis, gas charges are typically adjusted periodically and can result in sharp year-on-year increases when revised. This dynamic was evident in the latest SPI data, where the weekly easing in LPG prices contrasted with the persistent annual increase in gas charges.

According to PBS, the SPI is designed to capture both food and non-food price movements that affect household budgets. The latest data underline that while short-term relief may emerge from declines in certain energy items such as LPG, longer-term increases in utility charges continue to shape the broader inflation environment.

The contrasting movements in LPG prices and gas charges during the week ended January 22, 2026, illustrate the complexity of energy price dynamics within the SPI framework. While weekly price declines can ease immediate pressure, year-on-year increases in essential utilities remain a significant factor influencing the overall cost of living.

Credit: INP-WealthPk