Ogra announces an increase in LPG prices to Rs254.86 per kilogram, affecting various cylinder sizes differently.
ISLAMABAD: The caretaker government raised the price of liquefied petroleum gas (LPG) by RsRs3.83 per kilogram for commercial and home consumers in December, citing an increase in the average dollar exchange rate, according to The News.
The Oil and Gas Regulatory Authority (Ogra) said that LPG prices have increased to Rs254.86 per kilogram, up from Rs251.03 last month, affecting various cylinder sizes differently.
The LPG producer price, according to Ogra, is linked to the Saudi Aramco-CP and US dollar exchange rates, which remained unchanged from the previous month. The average dollar conversion rate, on the other hand, climbed by 1.87%, resulting in a Rs45.18/11.8 kg cylinder (or 1.5%) increase.
The price of a household cylinder has risen by Rs45.18/11.8kg since November, from Rs2,962.17 to Rs3,007.35. At the same time, the price of a 45.4kg commercial cylinder will rise by Rs173.882.
Ogra has calculated the producer price of LPG to be Rs176,314.44 a tonne, assuming a mix of 40% propane and 60% butane. This pricing includes an excise fee of Rs85 per tonne but does not include the fuel levy of Rs4,669 per tonne.
As a result, the total cost for an 11.8 kg cylinder is Rs2,080.51. The producer price would have been Rs180,983.47 per tonne prior to the application of an 18% general sales tax (GST), resulting in a price of Rs2,135.60/11.8kg cylinder. The GST on Rs180,983.47 per ton would have been Rs32,577.02, or Rs384.41 each 11.8 kg.
OGRA has also computed a maximum producer price of Rs213,560.49 per tonne or Rs2,520.01 each 11.8 kilogram cylinder. The marketing, distribution, and transportation margins have been set at Rs35,000 per tonne, with the marketing margin at Rs17,000 per tonne, the distribution margin at Rs10,000 per tonne, and the transportation margin at Rs8,000 per tonne, for a total margin of Rs 413 per cylinder.
On top of the marketing and distribution margin of Rs 35,000 per tonne, consumers must pay an 18% GST of Rs6,300 per tonne or Rs74.34 every 11.8 kg cylinder.
The caretaker government raised the price of LPG by Rs39 per kilogram (19.37%) in September, and by 8.7%, or Rs 20.86 per kilogram, in October. However, prices fell by 2% in November.
