Islamabad             -           The government has reduced the prices of indigenous liquefied petroleum gas (LPG) by Rs129.68 to Rs1530.17 for 11.8/kg cylinder for the month of March, a notification issued by the regulatory authority said on Sunday.

According to the notification issued by the Oil and Gas Regulatory Authority (OGRA), LPG price has been reduced by 12 per kg to Rs129.68 per kg from earlier Rs 142.4 per kg.

The new prices would come into effect from March 1, 2020, it added. It is pertinent to mention here that for the month of February also, the government had reduced the prices of indigenous liquefied petroleum gas (LPG) by Rs111.27 to Rs1,680.21/11.8kg cylinder.

For the month of March, the producers’ price of LPG (propane 40 percent and butane 60 percent) has been determined at Rs71164,84 per MT compared to Rs82,033.29 per MT ton in February. This price included excise duty of Rs85/ton, while excluding the petroleum levy.

Under this head, the producer price of Rs839.75 for 11.8kg cylinder has been worked out.

Similarly, OGRA has set marketing / distribution margin at Rs35,000 per ton, or Rs413 per cylinder, while 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 (GST), the consumer price would be Rs110833.84 per ton compared with Rs121,702.3 per ton in February, while the price of 11.8kg cylinder is Rs1307, said the  notification.

Additionally, a GST of 17 percent on Rs121,702.3  per ton would translate into Rs 18841.75 or Rs222.33 per cylinder.

The final consumer price per ton would be Rs 129,675.59 per ton, or Rs1530.17 per cylinder. Since July 2019, LPG price is hovering in between Rs1,327.76 and 1,791.5/cylinder.

In July 2019, the government notified LPG price at Rs1,330.92 per cylinder, August Rs1,350.03, September Rs1,327.76, October Rs1,475.63, November 1,495.86, December Rs1,513.69 and for January 2020, the price was Rs1,791.48 per cylinder, and for February it was Rs 1680.21 per cylinder.

It is worth mentioning here that the LPG price in the international market has also been decreased by $ 68, from $ 533 to $465 per MT.