The Oil & Gas Regulatory Authority (OGRA) has increased the price of Liquefied Petroleum Gas (LPG) by Rs 9 per kilogramme, according to a notification. The new price of an 11.8kg domestic cylinder is Rs 1,522.65 for March while it was Rs 1,427.63 in February. The price of 1kg of LPG is now Rs 129. Meanwhile, the price of a commercial cylinder has been fixed at Rs 5,856. However, contrary to the government’s notified price, LPG is being sold at exorbitant prices in the market. According to the notification, the producer price of LPG – propane 40 percent and butane 60 percent, the two components of LPG – has been determined at Rs 70,620.09 per tonne. The producer price included the excise duty of Rs 85 per tonne but excluded the petroleum levy. Based on the per-tonne price, the producer price of 11.8kg cylinder has been calculated at Rs 833.32. Marketing and distribution margins remained at Rs 35,000 per tonne and Rs 413 per 11.8kg cylinder and petroleum levy at Rs 4,669 per tonne and Rs 55.09 per cylinder.
Published in Daily Times, March 3rd 2019.
