ISLAMABAD - The government on Friday jacked up the price of indigenous liquefied petroleum gas (LPG) by Rs 9 per kg or Rs 95 per 11.8kg for the month of March 2019.

According to the notification issued by Oil and Gas Regulatory Authority (OGRA), the new price of 11.8kg domestic cylinder would be Rs 1523, up from Rs 1427.67 in February. The price of commercial cylinder was increased by Rs 409.

It is pertinent to mention here that the government has already announced an increase of up to 4.85 percent in the prices of the petroleum products.

It’s the 3rd consecutive increase during 2019 as announced by OGRA. The main reason for the price increase in the LPG prices is the surge in international prices. Besides, it is because the government was prompt to transfer the burden of the increase in LPG price to the poor consumers.

According to the OGRA notification, the producers price of LPG (propane 40 percent and butane 60 percent -two components of LPG) has been determined at Rs 70620.09 per metric ton (MT), increased from Rs 63738.16 per metric ton (MT) determined for February by the regulator.

The producers’ price included excise duty of Rs85 per metric ton, excluding Petroleum Levy. And under this head, the producer price of 11.8kg cylinder has been worked out at Rs 833.32, said the notification. As per the notification, the marketing/distribution margin has been set at Rs35000 per MT and Rs413 per 11.8 kg cylinder, a Petroleum Levy of Rs4669 per metric ton will be also charged, which is Rs55.09 for 11.8kg cylinder.

Ex-GST or Prior to General Sales Tax (GST) imposition, the consumer price will be Rs 110289.09 per metric ton and the 11.8kg cylinder price is Rs1301.41. The GST of 17 percent or Rs18749.18 per metric ton will be imposed and it will be Rs 221.24 for 11.8kg cylinder.

According to details of monthly officially notified LPG prices record, in February 2018 the government notified it at Rs1332.48 per 11.8kg cylinder, March Rs1286.37, April Rs1282.37, May Rs1352.26, June Rs1443.42, July Rs1479.44, August Rs1564.98, September Rs1613.43, October 1673.24, November 1509.03, December 1338.78, and Rs1361.7 for January 2019.

It is pertinent to mention here the commodity is being sold at high prices in the market.