ISLAMABAD-Oil & Gas Regulatory Authority (OGRA) Tuesday increased the price of liquefied petroleum gas (LPG) by Rs 34.93 for 11.8-kilogramme domestic cylinder and Rs 134 for commercial cylinder.
As per the notification issued by Oil and Gas Regulatory Authority (OGRA) here, the LPG price has been increased by Rs 2.96 per kilogram (KG) for the month of November 2022. After the upward revision, the price of LPG has gone up to Rs 204.16 per kg from the earlier Rs 201.20 per kg. Following the hike, the price of 11.8kg domestic cylinder has gone up by Rs 34.93 while the price of a commercial cylinder increased by Rs 134. The price of 11.8 domestic cylinder has gone up from the earlier Rs 2374.25 to Rs 2409.18 and commercial cylinder has increased from Rs 9135 to Rs 9269.
As per the Ogra calculation, the producers’ price of LPG (propane 40 percent and butane 60 percent) has been determined at 134,832.17/ton. This price included excise duty of Rs85/ton, while excluding the petroleum levy. Under this head, the producer price of Rs1591.02/11.8kg cylinder has been worked out.
Marketing/distribution margin has been set at Rs35,000 per ton (Marketing Margin Rs 17000/M.Ton+ Distribution Margin 10000/M.Ton+ Transportation Rs 8000/M.Ton) or Rs413 per cylinder, a 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, the consumer price would be Rs139,501.17/ton, while the price of the 11.8kg cylinder is Rs1646.11 per cylinder. Additionally, a GST of 17 percent on Rs139,501.17/ton would be Rs 23,715.20/ton or Rs279.85 for a 11.8 kg cylinder. The maximum producer price with GST would be Rs163.216.37/ton or Rs1925.95 per cylinder. Interestingly, the poor LPG consumers will pay another  GST of Rs 5950/ton at 17pc (Rs70.21 per 11.8 kg cylinder) on marketing/distribution margin of Rs35,000 per ton, taking the maximum consumer price to Rs 204,166.37/ton or Rs 2409.16 per 11.8 kg cylinder.
Meanwhile, Chairman LPG Industries Association Irfan Khokhar said that the country is already facing a severe natural gas supply crisis. He said that the insane policies of the government coupled with high number of taxes have put a negative impact on LPG industry. He said the LPG distributors have been paying over Rs.6 billion per annum under the head taxes. The government should waive off taxes in order to ensure provision of cheap LPG to the consumers during winter season, Khokhar said. A comprehensive policy of LPG import should be made to meet the shortfall of natural gas, he added. Demanding from the government to restart the operation of LPG production plant of the Jamshoro Joint Venture Limited (JJVL) in order to ensure supply of cheap LPG on sustainable basis, Khokhar said that in addition to hike in LPG prices, the closure of JJVL Jamshoro plant has incurred a loss of billions of rupees to national exchequer, he maintained.