The Oil and Gas Regulatory Authority (OGRA) on Monday increased the price of indigenous liquefied petroleum gas (LPG) by Rs. 39 per kg, increasing the price of 11.8 kg domestic cylinder by almost Rs. 460 or 20 percent for September.

In a notification, the regulator set the price of LPG at Rs. 240 per kg for September compared to Rs. 201 in August. The 11.8 kg domestic cylinder price was set at Rs. 2,833 in September compared to Rs. 2,373 in August.

As per OGRA’s calculation, the producer price of LPG (propane 40 percent and butane 60 percent) has been determined at Rs. 163,827 per tonne for September against Rs. 130,802 per tonne in August. The new price included an excise duty of Rs. 85 per tonne. Therefore, the producer price for the 11.8 kg cylinder was worked out at Rs. 2,346 against Rs. 1,886 last month.

With the addition of Rs. 4,669 per tonne of petroleum levy and 18 percent sales tax of Rs. 30,329 per tonne for September, the maximum producer price was worked out at Rs. 198,826 per tonne for September. The maximum producer price for the domestic cylinder of 11.8 kg was thus calculated at Rs. 2,346 per kg for the current month.

For consumer price, another Rs. 35,000 per tonne of marketing, distribution, and transportation margin was added to the maximum producer price besides another 18 percent GST (Rs. 6,300 per tonne on this margin). Thus the consumer end maximum LPG price was fixed at Rs. 240,126 per tonne (Rs. 2,833 per cylinder of 11.8 kg) for September.

Source: ProPakistani