LPG price raised by Rs3.83 per kg to Rs254.86 for December

ISLAMABAD-The caretaker government Thursday increased the price of liquefied petroleum gas (LPG) for commercial and domestic consumers by Rs3.83 per kilogramme for the month of December mainly owing to depreciation of Pakistani rupee against the dollar. As per the notification issued by Oil and Gas Regulatory Authority (Ogra), the price of LPG has been raised to Rs254.86 per kg in December from Rs251.03 per kg in November.
The Oil and Gas Regulatory Authority (OGRA) in accordance with the policy guidelines of the federal government has determined the maximum price of liquefied petroleum gas (LPG) effective from December 1st. According spokesperson Ogra, the LPG producer price is linked with Saudi Aramco-CP and US$ dollar exchange rate. As compared to previous month Saudi Aramco-CP has remained unchanged. The average dollar exchange rate has however gone up by 1.87% resulting to increase in LPG consumer price by Rs.45.18/11.8 kg cylinder (1.5%). The per kg increase in LPG consumer price is Rs.3.83.
The revised pricing will have varying impacts on different cylinder sizes. After hike, the price of domestic cylinder will go up by Rs 45.18/11.8kg cylinder. While the price of 45.4kg commercial cylinder will go up by Rs 173.882. Ogra has determined the producer price of LPG, assuming a composition of 40 percent propane and 60 percent butane, to be Rs176,314.44 per ton. This price incorporates an excise duty of Rs85 per ton, excluding the petroleum levy of Rs4,669 per ton. Consequently, the total cost for an 11.8 kg cylinder amounts to Rs2,080.51/11.8kg cylinder. Before the imposition of an 18 percent general sales tax (GST), the producer price would have been Rs180,983.47 per ton, resulting in a price of Rs2,135.60/11.8kg cylinder. The GST on Rs Rs180,983.47 per ton would have been Rs32,577.02 per ton or Rs384.41 per 11.8 kg cylinder.
Furthermore, Ogra has calculated a maximum producer price of Rs 213,560.49 per ton or Rs 2,520.01 per 11.8 kg cylinder. The marketing, distribution, and transportation margin has been set at Rs35,000 per ton, comprising a marketing margin of Rs17,000 per ton, distribution margin of Rs10,000 per ton, and transportation margin of Rs8,000 per ton, resulting in a total margin of Rs413 per cylinder. Additionally, consumers are taxed with an 18 percent GST of Rs6,300 per ton or Rs74.34 per 11.8 kg cylinder on the marketing and distribution margin of Rs35,000 per ton. It is worth noting that for the month of September the caretaker government had increased the price of LPG by Rs 39 per kilogram (19.37 percent). For the month of October also, the caretaker government had jacked up the prices of LPG by 8.7 percent or Rs 20.86 per kilogram. However, for the month of November the price of LPG was reduced by Rs 9.95/kg.

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