ISLAMABAD    -   The government Monday increased the price of local liquefied petroleum gas (LPG) by Rs12.53 per kg for October. As per the notification issued by Oil and Gas Regulatory Authority (OGRA), the LPG price has been increased by 12.53 per kg to Rs125.05 per kg.

Due to increase in the Saudi Aramco LPG prices, the LPG marketing companies have increased, last week, the prices of the LPG by Rs 140 per cylinder by their own without the prior notification of OGRA. Now the government has endorsed the price hike by LPG marketing companies and increased the price by around Rs 148 per domestic cylinder.

As per Ogra notification the 11.8kg cylinder price has been increased by Rs147.87 to Rs1475.63. The new prices would be effective from Tuesday (Today). For the months of September, OGRA had notified LPG price at Rs1327.76 per cylinder or Rs112.52 per kg.

The producers’ price of LPG (propane 40 percent and butane 60 percent) has been determined at 67,214.83/ton (in September it was 56,504.52/ton). This price included excise duty of Rs85/ton, while excluding the petroleum levy. Under this head, the producer price of Rs793.13/11.8kg cylinder has been worked out.

Marketing/distribution margin has been set at Rs35,000 per ton or Rs413 per cylinder, a petroleum levy of Rs4,669 per ton would also be charged, which would translate into Rs55.09 per cylinder. Prior to the imposition of general sales tax, the consumer price would be Rs106,883.83 per ton (in September it was Rs96,173.52/ton), while the price of the 11.8kg cylinder is Rs1,261.22. Additionally, a GST of 17 percent on Rs106,883.83 per tonne would be Rs18,170.25 or Rs214.41 for a cylinder. The final price per tonne would be Rs125,054.08 per ton or Rs1,475.63 per cylinder.

Since January, the LPG price is hovering between Rs1,327.76 to Rs1,580.14 per cylinder. According to detail of monthly official notified LPG prices record, in January 2019, the government notified it at Rs1,361.7 per cylinder, February Rs1,427.63, March Rs1,522.65, April Rs1,563.92, May Rs1,580.14, June Rs1,399.39, July 1,330.92, August Rs1,350.03, September 1,327.76 and for the month of October, Ogra determined its price at Rs1,475.63 per cylinder.

The government last week banned the import of LPG from Iran, after the US embassy asked Pakistan to ensure compliance with US sanctions against Tehran, calling it “an issue of mutual interest of both governments”.

The banning of Iranian LPG will further increase the LPG prices in the local market. Chairman of All Pakistan LPG Distributor Association, on Tuesday warned again that the closure of Taftan Border will increase the price of LPG Rs 30 per Kg.