Oil and Gas Regulatory Authority (Ogra) has decreased the price of 11.8 kg liquefied petroleum gas (LPG) domestic cylinder by Rs 180.75 for the month of June. A substantial reduction in demand of LPG, the oil and gas authority accounts for an 11 percent reduction or Rs 16 per kilogram on domestic LPG cylinder. This is the first time in the current year when OGRA has notified a reduction in the price of LPG.
The new notified price of 11.8 kg domestic cylinder will be Rs 1399.39 which was Rs 1580.14 in May. The price of commercial cylinder is fixed at Rs 5383. The producers price of LPG (propane 40 percent and butane 60 percent -two components of LPG) has been determined at Rs 61,691.99 per metric ton (MT) - reflecting a decline from Rs 74,784.75 per metric ton (MT) of price fixed for May.
The producers' price includes excise duty of Rs 85 per metric ton, excluding Petroleum Levy. And under this head, the producer's price of 11.8kg cylinder has been worked out at Rs 727.97as per the notification.
The marketing/distribution margin has been set at Rs 35000 per MT and Rs 413 per 11.8 kg cylinder, and Petroleum Levy of Rs 4669 per metric ton will be also charged, which is Rs 55.09 for 11.8kg cylinder.
Ex-GST or Prior to General Sales Tax (GST) imposition, the consumer price will be Rs 101,360.99 per metric ton and the 11.8kg cylinder price is Rs 1196.06. The GST of 17 percent or Rs 17231.37 per metric ton has been imposed which was passed on at the rate of Rs 203.33 for domestic cylinders. LPG Industries Association of Pakistan Founder/Chairman Irfan Khokhar told Business Recorder that due to better policies of the government and reduction in LPG prices in the international market, the LPG would be available to domestic and commercial consumers at a lower rate.
He, however, said the government was considering imposition of taxes on LPG at import level which would increase the price of LPG cylinders. He said the LPG Association had given government a deadline of June 30 to withdraw any proposal to impose a tax on import of LPG failing which they would go on strike.