ISLAMABAD    -    The Oil and Gas Regulatory Authority (OGRA) has slashed the price of indigenous liquefied petroleum gas (LPG) by Rs 155 per 11.8 kg cylinder or Rs13 per kg for the month of June.

According to the notification issued by Ogra, the price of indigenous liquefied petroleum gas (LPG) has been reduced by Rs.13/kg to Rs 218.76 per kg. As per the notification, price of LPG 11.8kg domestic cylinder has been reduced by Rs 155(5.66pc) to Rs 2,581.35 from the existing Rs 2736.31. The price of commercial cylinder has been reduced to Rs. 9,931.65.

As per the Ogra calculation, the producers’ price of LPG (propane 40 percent and butane 60 percent) has been determined at 147,304.38/ton. This price included excise duty of Rs85/ton, while excluding the petroleum levy. Under this head, the producer price of Rs1738.19/11.8kg cylinder has been worked out. Marketing/distribution margin has been set at Rs35,000 per ton (Marketing Margin Rs 17000/M.Ton+ Distribution Margin 10000/M.Ton+ Transportation Rs 8000/M.Ton) or Rs413 per cylinder; a petroleum levy of Rs4,669 per ton would also be charged, which would translate into Rs55.09 per cylinder. Prior to the imposition of general sales tax, the consumer price would be Rs151,973.38 per ton, while the price of the 11.8kg cylinder is Rs1783.29. Additionally, a GST of 17 percent on Rs Rs151,973.38 per ton would be Rs 25,845.47 per ton or Rs304.86 for a 11.8 kg cylinder. The final price per ton would be Rs218,758.85 per ton or Rs 2,581.35 per cylinder.

Commenting on the issue, Chairman LPG Distributors Association Pakistan, Irfan Khokhar said that the current official rate of LPG can be reduced by about Rs 100 per kg. LPG Industries Association Chairman Irfan Khokhar said the task can be achieved by following the formula of the association, which is as follows: Fix/freeze the LPG producer base price at Rs 40.000/- per metric ton, increase the local LPG production, and above all, Asia’s largest plant Jamshoro Joint Venture Limited (JJVL), which has been closed for two years and has caused losses of Rs. 50 billion to the national exchequer, should be started immediately.