OGRA slashes LPG price by Rs10 per kg

Fuel will be sold at Rs142 per kg in February

ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) has announced a reduction of Rs10 per kg in the price of domestic cylinder (11.8 kg) of locally produced liquefied petroleum gas (LPG) and a reduction of Rs454 in the price of commercial cylinder (45.4 kg) for February 2020.

According to a notification issued by Ogra, the LPG price has been slashed to Rs1,680.21 per domestic cylinder from Rs1,791.48 in January, a significant reduction of Rs111 for February.

Similarly, the commercial cylinder will be available at Rs6,437 instead of Rs6,891 in January. The regulator notified Rs142 as the per-kg LPG price.

The LPG producer price (propane 40% and butane 60%) has been calculated at Rs82,033.29 per ton for February compared with Rs90,092.65 per ton in January 2020. This price includes excise duty of Rs85 per ton but does not include the petroleum levy. Ogra worked out the producer price for 11.8kg cylinder at Rs967.99.

Marketing and distribution margins have been set at Rs35,000 per ton or Rs413 per cylinder. Apart from these, petroleum levy of Rs4,669 per ton will also be charged, which will translate into Rs55.09 per cylinder.

Prior to the imposition of general sales tax (GST), the consumer price will be Rs121,702.29 per ton compared with Rs129,761.65 per ton in January. The price of 11.8kg cylinder will now stand at Rs1,436.08.

Additionally, 17% GST will be charged, which will translate into Rs20,689.39 per ton or Rs244.13 per cylinder. Final consumer price will be Rs142,391.65 per ton or Rs1,680.21 per cylinder.

Since July 2019, the LPG price has been fluctuating between Rs1,327.76 and Rs1,513.69 per cylinder. LPG Industries Association of Pakistan Chairman Irfan Khokhar welcomed the reduction in LPG prices for domestic and commercial cylinders.

Published in The Express Tribune, February 1^st, 2020.

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