April 2020 OGRA cuts price of LPG cylinder

ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) has slashed the price of locally produced liquefied petroleum gas (LPG) by Rs462.78 per 11.8kg domestic cylinder for April 2020 due to low consumption and decline in petroleum prices globally.

In a notification issued on Tuesday, Ogra fixed the price of 11.8kg cylinder at Rs1,067.39, down 30% from Rs1,530.17 in March.

However, contrary to the government’s notified price, LPG cylinders are being sold at exorbitant prices, signalling weak administrative control of the government machinery.

Last week, Special Assistant to Prime Minister on Petroleum Nadeem Babar admitted that LPG cylinders were not available at notified prices and stressed that the government would strengthen the respective wing of Ogra.

According to Ogra’s notification, the producer price of LPG (propane 40% and butane 60% - the two components of LPG) has been determined at Rs37,645.08 per ton.

The producer price includes excise duty of Rs85, excluding the petroleum levy. Under this head, the producer price of 11.8kg cylinder has been worked out at Rs444.21.

As per the notification, the marketing/distribution margin has been set at Rs35,000 per ton and Rs413 per 11.8kg cylinder. Petroleum levy of Rs4,669 per ton will also be charged, which will be Rs55.09 for 11.8kg cylinder.

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

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.