ISLAMABAD  -  The federal government Thursday bumped up the price of liquefied petroleum gas (LPG) by Rs2.89 per kilogramme (1.15 per cent), consecutively for the third month, to Rs254.2 for November 2024.  According to the notification issued by Oil and Gas Regulatory Authority (Ogra), following the hike, price of the 11.8 kilogramme domestic cylinder will go up by Rs34.09, while rate of commercial cylinder of 45.4kg will go up by Rs131.21.

Following the increase, the price of 11.8-kilogramme domestic gas cylinder will go up from Rs2,965.38 to Rs 2999.47, while 45.4kg commercial cylinder will reach Rs11,431.21 from the existing Rs11,300. The new prices will be effective from today (Nov 1, 2024). Interestingly, Ogra as a regulator has failed to ensure the enforcement of these prices of LPG and the product is already being sold at over Rs320/kg, even in the capital city of Islamabad. As per notification from the OGRA, the cost of per kilogramme of LPG after the increase will be Rs254.2. Notably, for the months of October and September too, the government had increased LPG prices by Rs 7.31 per kilogram and Rs7 per kilogram respectively.

“The LPG producer price is linked with Saudi Aramco-CP and US$ dollar exchange rate. As compared to previous month Saudi Aramco-CP has increased by 1.6%. The average dollar exchange rate has slightly decreased by 0.19% resulting in increase in LPG consumer price by Rs34.09/11.8kg cylinder (1.15%),” Ogra said.

The regulator calculated the producer price of LPG, assuming a composition of 40 per cent propane and 60 per cent butane, to be Rs175,748.33 per tonne. This includes an excise duty of Rs85 per tonne but excludes the petroleum levy of Rs4,669 per tonne. The total cost for an 11.8-kilogramme cylinder is Rs2,073.83. Without an 18 per cent general sales tax (GST), the producer price would have been Rs180,417.33 per tonne, leading to a cylinder price of Rs 2,128.92. The GST on this amount would be Rs32,475.12 per tonne or Rs382.21 per 11.8-kilogramme cylinder.

OGRA also determined the maximum producer price at Rs212,892.45 per tonne (including GST), or Rs2,512 per 11.8-kilogram cylinder. Marketing, distribution, and transportation margins have been set at Rs35,000 per tonne, with a marketing margin of Rs17,000, a distribution margin of Rs10,000, and a transportation margin of Rs8,000, resulting in a total margin of Rs413 per cylinder. Consumers will also face an 18 per cent GST of Rs6,300 per tonne or Rs74.34 per 11.8-kilogram cylinder on these margins. The maximum LPG consumer price will be Rs254,192.45 per tonne or Rs2,999.47 per 11.8-kilogram cylinder. The maximum LPG price will be Rs254.19 per kilogramme.