ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) on Tuesday increased the price of indigenous liquefied petroleum gas (LPG) by about Rs5 per kg, pushing up the cost of 11.8-kg domestic cylinder by almost Rs58 for this month.

In a notification, Ogra set the price of LPG at Rs233.89 per kg for May against Rs228.8 per kg in April, up by Rs4.89 per kg. As such, the 11.8kg domestic cylinder was set at Rs2,759.89 for the current month against Rs2702.2 during the previous month.

On the other hand, the price of commercial cylinder (45.4kg) was increased by Rs222 to Rs10,619 for May against Rs10,397 in April.

As per the Ogra calculation, the producer price of LPG (propane 40pc and butane 60pc) has been determined at Rs158,542 per tonne. This price included excise duty of Rs85 per tonne. Therefore, the producer price for 11.8kg cylinder was worked out at Rs1,871.

With addition of Rs4,669 per tonne of petroleum levy and 18pc (Rs29,378 per tonne) general sales tax, the maximum producer price was worked out at Rs192,588 per tonne for May against Rs187,700 per tonne in April. The maximum producer price for domestic cylinder of 11.8kg was calculated at Rs2.272.55 per kg instead of Rs2,215 last month.

For consumer price, another Rs35,000 per tonne of marketing, distribution and transportation margin was added to the maximum producer price besides another 18pc GST (Rs6300 per tonne on this margin). Thus the consumer end maximum LPG price was fixed at Rs233,889 per tonne or Rs2,760 per 11.8kg of domestic cylinder.

Published in Dawn, May 3rd, 2023