ISLAMABAD-The government on Tuesday increased the price of 11.8kg liquefied petroleum gas (LPG) cylinder by Rs 57.70 for May 2023.
After the hike, rate of a kilogram of LPG has gone up by Rs 4.89/kg and will be available at Rs 233.89/kg in May against the price of Rs Rs229/kg in April. LPG is being used for cooking purposes in areas where piped natural gas is not available. 
OGRA notification issued here said that the LPG price for 11.8kg domestic cylinder has increased to Rs2759.89 for May against Rs2702.2 in April. The cost of domestic cylinder increased by Rs 57.70 over previous month. Whereas, the price of commercial cylinder (45.4kg) would go up by Rs222.49 and now be sold at Rs10,618.606 in May 2023 against the price of Rs10,397 in April 2023. As per the Ogra calculation, the producer price of LPG (propane 40 percent and butane 60 percent) has been determined at 158,541.88/ton. This price included excise duty of Rs85/ton while excluding the petroleum levy of Rs4,669/ton, which is Rs 55.09 for 11.8kg cylinder. It will take the cost of the cylinder to Rs1925.89. 
Prior to the imposition of an 18% general sales tax (GST), the producer price would be Rs163,210.88/ton, while the price of 11.8kg cylinder is Rs1925.89 per cylinder. Additionally, GST of 18% on 163,210.88/ton would be Rs 29,377.96/ton or 346.66 per 11.8kg cylinder. 
Under this head, the producer price of Rs2,272.55/11.8kg cylinder has been worked out. The marketing/distribution/transportation margin has been set at Rs35,000 per ton (Marketing margin of Rs17,000/ton, distribution margin of Rs10,000/ton and transportation margin of Rs8,000/ton) or Rs413 per cylinder.  It is to be noted that the consumers are being double-taxed, as they have to again pay 18% GST of Rs6,300/ton or Rs74.34 per 11.8 kg cylinder on the marketing/distribution margin of Rs35,000 per ton.
Meanwhile, Chairman LPG Industries Association Irfan Khokhar claimed that price of LPG can be reduced if the government follow their formula. He said that the country was already facing a gas shortage and demanded of the government to deal the LPG industry like it does with the LNG sector, where there are no taxes on it. If the government does so, then we can supply LPG to domestic consumers at less price than piped gas, he claimed. The government’s “insane policies” coupled with a high number of taxes have put a negative impact on the LPG industry. LPG distributors have been paying over Rs6 billion per annum under the head of taxes. The government should waive off taxes to ensure provision of cheaper LPG to consumers during the winter season, said Irfan Khokhar.