ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) on Tuesday notified a massive increase of Rs60 per kg on 11.8kg domestic cylinder and commercial cylinder for the month of February as compared with the previous month.

After an increase by Rs703.24, the Ogra fixed the new price of 11.8kg LPG cylinders for domestic use at Rs3114.67. The price of commercial cylinder has also increased by Rs2,706 which is largely used for tandoors and general industry. The new price of commercial cylinder has been fixed at Rs11,984.

After Rs60 per kg increase, Rs264 per kg is the new price per cylinder for both domestic and commercial.

The Ogra has increased the prices in winter when the usage of LPG increased manifold due to low gas pressure and a moratorium on new gas connections across the country.

The increase will also help the two gas companies -Sui Northern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company (SSGC) to increase their revenue as both companies are also acting as importers and distributions of LPG cylinders in the current winter.

According to a notification, the regulatory body increased the price of domestic cylinders from Rs2,411.43 in January to Rs3,114.67 for the current month. The LPG producers price increase from Rs134,996.39 to Rs185,933.37 or Rs50936.98 per MT.

Petroleum levy at the production stage was sustained at the previous level at Rs4,669 per MT, however, 17 percent GST reduced by Rs8,659.28 from Rs32,402.40/MT to Rs23,743.12/MT.

Copyright Business Recorder, 2023