LPG Association has rejected the notified prices of Oil and Gas Regulatory Authority (OGRA) on the pretext that it would further increase the prices of gas. The government notified the LPG price at Rs 1332.48 per 11.8 kg cylinder for the consumers on Thursday.
A notification issued by the OGRA stated that in exercise of the powers conferred by section 6 (2) (r) of the OGRA Ordinance 202(XVII of 202) read with Rule 18(1) of LPG (Production & Distribution) Rules 2001, the OGRA hereby notified in respect of indigenous LPG, maximum producers prices, margin of marketing and distribution companies and consumer price as conveyed by the Ministry of Energy (Petroleum Division) vide letter No LPG-6 (11)/2017-policy dated January 30, 2018 and letter No LPG-6 (1)/2018-policy dated February 01, 2018.
According to the notification, producers' price of the LPG (propane 40pc and butane 60pc - two components of the LPG) has been determined at Rs 56845.37 per metric ton (MT) which included excise duty of Rs 85 /MT while excluding petroleum levy. Under this count, the producer price of 11.8 kg cylinder has been worked out at Rs 670.78. Marketing/distribution margin has been set at Rs 35000/MT and Rs 413/ 11.8 kg cylinder, a petroleum levy Rs 4669 per MT will be also charged which will be Rs 55.09 for a cylinder weighing11.8 kg.
Prior the GST imposition, the consumer price (ex-GST), the price will be Rs 96514.37/MT and the 11.8 kg cylinder price is Rs 1138.87. GST of Rs 16407.44/MT will be imposed and Rs 193.61 for 11.8 kg cylinder. Chairman LPG Distribution Association, Irfan Khokhar said that the OGRA has calculated the prices based on domestic LPG production, adding that it was against the decisions taken under the LPG policy.
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