ISLAMABAD - The government on Monday jacked up the price of indigenous liquefied petroleum gas (LPG) by Rs 3.50 per kg or Rs 41.27 per 11.8kg for the month of April 2019.

According to the notification issued by Oil and Gas Regulatory Authority (OGRA), the LPG prices have been increased by Rs 3.5 per kg (2.7 percent) and the new price of 11.8kg domestic cylinder would be Rs1,563.92. In March the price of the cylinder will be Rs1,522.65 per cylinder. After the Ogra’s decision, the price of commercial cylinder had gone up by Rs 201 per cylinder.

According to the notification issued here by Ogra, the producers price of LPG (propane 40 percent and butane 60 percent) has been determined at 73,609.72 per metric ton (in March it was 70620.09 per metric ton). This producers’ price included excise duty of Rs85/M ton while excluding Petroleum Levy. And under this head, the producer price of 11.8Kg cylinder has been worked out at Rs868.59.

Marketing/distribution margin has been set at Rs35000 per MT or Rs 413 per 11.8 Kg cylinder, a Petroleum Levy of Rs4,669 per MT will be also charged which will be Rs55.09 for 11.8Kg cylinder.

Prior to GST imposition, the consumer price (ex-GST) will be Rs113,278.72 per metric ton (in March it was Rs110289.09) and the 11.8Kg cylinder price is Rs1336.68. GST of 17 percent of Rs19,257.38 metric tone will be imposed and Rs227.24 for cylinder.

Gas is being sold at higher rate in open market

In March, official price was Rs1,522.65 per cylinder, which was Rs 95 (or 6.65 percent) more than February. Despite that fact that the government notifies its prices every month, but in open market it is being sold at exorbitant prices against what the government notifies. This is signaling towards the weak administrative control of the government machinery. In parts of the country, including main urban centers, the LPG is charged more than 1600/cylinder.

According to detail of monthly official notified LPG prices record, in February 2018 government notified it at Rs1332.48 per 11kg cylinder, March (Rs1286.37), April (Rs1282.37), May (Rs1352.26), June (Rs1443.42), July (Rs1479.44), August (Rs1564.98), September (Rs1613.43), October (1673.24), November (1509.03), December (1338.78), in January 2019, it was Rs1361.7 per cylinder and in February it was Rs1427.63, March Rs1522.65 per cylinder and now for April it has been notified at Rs1,563.92 per cylinder.