The caretaker government raised the price of liquefied petroleum gas (LPG) for commercial and home consumers by RsRs3.83 per kilogram for the month of December, citing an increase in the average dollar exchange rate.
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.
According to OGRA, the LPG producer price is linked to the Saudi Aramco-CP and US dollar exchange rate, remaining unchanged from the previous month. Nevertheless, the average dollar exchange rate increased by 1.87%, resulting in a 1.5% or Rs45.18 rise in LPG consumer prices for an 11.8 kg cylinder.
Following the hike, the domestic cylinder’s price has increased from Rs2,962.17 to Rs3,007.35. Simultaneously, the price of a 45.4 kg commercial cylinder will see a rise of Rs173.882.
Ogra has set the producer price of LPG, assuming a composition of 40% propane and 60% butane, at Rs176,314.44 per tonne. This price includes 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. Before 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 for an 11.8 kg cylinder. The GST on Rs180,983.47 per tonne would have been Rs32,577.02 or Rs384.41 per 11.8 kg cylinder.
Furthermore, 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 Rs413 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 Rs35,000 per tonne.
In September, the caretaker government increased the LPG price by Rs39 per kilogram (19.37%), and in October, the prices rose by 8.7% or Rs20.86 per kilogram. However, in November, the prices decreased by Rs9.95/kg.
