ISLAMABAD: The interim government, responding to a surge in the average dollar exchange rate, has raised the prices of liquefied petroleum gas (LPG) by Rs3.83 per kilogram for both commercial and domestic consumers in December.
The Oil and Gas Regulatory Authority (Ogra) confirmed the increase, stating that LPG prices now stand at Rs254.86 per kg, compared to last month’s Rs251.03, impacting various cylinder sizes differently.
Ogra clarified that while the LPG producer price is linked to the Saudi Aramco-CP and US dollar exchange rate, which remained constant, a 1.87% rise in the average dollar exchange rate resulted in a 1.5% increase in LPG consumer prices, equating to Rs45.18/11.8 kg cylinder.
Following the adjustment, the cost of a domestic cylinder has risen by Rs45.18/11.8kg, reaching Rs3,007.35 from November’s Rs2,962.17. Simultaneously, the price of a 45.4kg commercial cylinder will experience a Rs173.882 hike.
Ogra has set the producer price of LPG, assuming a composition of 40% propane and 60% butane, at Rs176,314.44 per tonne, inclusive of an excise duty of Rs85 per tonne, excluding the petroleum levy of Rs4,669 per tonne.
Consequently, the total cost for an 11.8 kg cylinder amounts to Rs2,080.51. Prior to the imposition of an 18% general sales tax (GST), the producer price would have been Rs180,983.47 per tonne, 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 per tonne or Rs384.41 per 11.8 kg cylinder.
Additionally, OGRA has calculated a maximum producer price of Rs213,560.49 per tonne or Rs2,520.01 per 11.8 kg cylinder. The marketing, distribution, and transportation margin have been set at Rs35,000 per tonne, comprising a marketing margin of Rs17,000 per tonne, distribution margin of Rs10,000 per tonne, and transportation margin of Rs8,000 per tonne, resulting in a total margin of Rs 413 per cylinder.
Consumers are also subject to an 18% GST of Rs6,300 per tonne or Rs74.34 per 11.8 kg cylinder on the marketing and distribution margin of Rs 35,000 per tonne.
In September, the interim government increased the LPG price by Rs39 per kilogram (19.37%), and in October, the prices rose by 8.7% or Rs 20.86 per kilogram. However, in November, the prices decreased by Rs9.95/kg.
