OGRA jacks up LPG price by Rs79 per kg

ISLAMABAD:

The Oil and Gas Regulatory Authority (Ogra) has notified a 35% increase in Liquefied Petroleum Gas (LPG) rates, jacking up the cost of an 11.8kg domestic cylinder by Rs924 for April as a consequence of a surge in the global market

In a notification, the regulator set the LPG price at Rs304.15 per kg for April, compared to Rs225.84 per kg in March. Consequently, the price of an 11.8kg domestic cylinder was set at Rs3,588.60 for April, compared to Rs2,664.88 in March.

According to Ogra's calculation, the producer price of LPG, which comprises 40% propane and 60% butane, was determined at Rs262,817.53 per tonne for April, compared to Rs184,537 per tonne in March. The new price included an excise duty of Rs85 per tonne.

Therefore, the producer price for an 11.8kg cylinder was calculated at Rs3,101.25 for April, compared to Rs2,177.54 in March. This also included a petroleum levy of Rs4,669 per tonne and 18% general sales tax (GST) of Rs40,091, up from Rs26,552.94 in March.

For the consumer price, margins for marketing (Rs17,000), distribution (Rs10,000) and transportation (Rs8,000)—totaling Rs35,000 per tonne—were added to the maximum producer price, besides an additional 18pc GST (Rs6,300 per tonne on this margin).

The maximum consumer-end LPG price was fixed at Rs304,117.53 per tonne or Rs3,588.59 for an 11.8kg domestic cylinder for April, compared to Rs225,837 per tonne or Rs2,664.88 for an 11.8kg in March. The notification said the new prices would remain in effect until April 30.

Ogra reported that compared to the previous month, the Saudi Aramco-CP increased by 44%, while the average dollar exchange rate slightly decreased by 0.11%, resulting in an LPG consumer price increase of Rs923.71 per 11.8kg cylinder (34.66%).