A day after increasing petrol and diesel prices, the caretaker administration raised the price of liquefied petroleum gas (LPG) by 19.4 percent on Friday, raising the cost of a home cylinder by Rs460 for the current month.
Pakistan Railways quickly followed suit, increasing passenger rates by 5%. This was the second monthly gain.
The Oil and Gas Regulatory Authority (Ogra) set the price of LPG for September at Rs240.2 per kilogramme, up from Rs201.2 in August, in a notification.
As a result, the price of a home LPG cylinder weighing 11.8kg has been hiked by Rs460 to Rs2,833.49 for the current month, up from Rs2,373.64 in the previous month.
The price of a commercial cylinder (45.4kg) in September has risen by Rs1,170 to Rs10,905 from Rs9,135 in August.
Ogra ascribed the increase in LPG prices to the rupee’s depreciation and the higher price of the fuel in the Saudi market.
According to the regulator, the LPG price was raised since the producers’ pricing was tied to Saudi Aramco’s contract price for the fuel and the US dollar exchange rate.
According to the report, Saudi Aramco’s contract price had increased by 19.8 percent over the previous month, while the average dollar exchange rate had increased by 4.5 percent, raising the LPG consumer price.
According to Ogra’s calculations, the producers’ price of LPG (propane 40% and butane 60%) is Rs163,828 a tonne, including an excise fee of Rs85 per tonne. As a result, the producers’ price for the 11.8kg cylinder was calculated to be Rs1,933 rather than Rs1,543 last month.
With the inclusion of Rs4,669 per tonne of petroleum levy and 18% (Rs30,330 per tonne) general sales tax, the highest producer price for September was calculated to be Rs198,826 per tonne, up from Rs159,886 per tonne in August. The maximum producer price for a home cylinder weighing 11.8kg was assessed to be Rs2,346 per kg, up from Rs1,886 before.
In order to calculate the consumer price, another Rs35,000 per tonne of marketing, distribution, and transportation margin was added to the highest producer price, along with an additional 18% GST (Rs6,300 per tonne on this margin).
As a result, the maximum consumer-end LPG price was set at Rs240,126 per tonne, or Rs2,834 for every 11.8kg home cylinder. The revised prices will be in effect until September 30.
Train fares up
Meanwhile, Pakistan Railways raised passenger tariffs by 5%, the second increase in a month.
Railway officials have blamed the ticket price increase on rising diesel expenses.
Pakistan Railways announced a 10% rise in rates for all mail/express, intercity, shuttle, passenger trains, and saloons from August 16.
Separately, Human Rights Watch has suggested that the IMF and the Pakistan government do a detailed evaluation of the impact of phasing out subsidies to ensure that eliminating fossil fuel subsidies supports rather than erodes rights.
According to HRW, before phasing out the subsidies, the IMF and the government should implement a thorough reform plan.