ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) on Tuesday notified a whopping 35 per cent increase in Liquefied Petroleum Gas (LPG) rates, jacking up the cost of an 11.8kg domestic cylinder by Rs924 for April as a consequence of a surge in the global market

In a notification, the authority set the price of LPG at Rs304.15 per kg for April against Rs225.84 per kg in March. As such, the price of an 11.8kg domestic cylinder was set at Rs3,588.60 for April against Rs2,664.88 in March.

As per the Ogra calculation, the producer price of LPG (which comprises 40pc propane and 60pc butane) was determined at Rs262,817.53 per tonne for April against Rs184,537 per tonne in March. The new price included an excise duty of Rs85 per tonne.

Therefore, the producer price for an 11.8kg cylinder was worked out at Rs3,101.25 for April against Rs2,177.54 in March. This also included a petroleum levy of Rs4,669 per tonne and 18pc general sales tax (GST) at Rs40,091, which was Rs26,552.94 in March.

For the consumer price, another Rs35,000 per tonne of marketing (Rs17,000), distribution (Rs10,000) and transportation (Rs8,000) margins were added to the maximum producer price, besides an additional 18pc GST (Rs6,300 per tonne on this margin).

Thus, the consumer-end maximum LPG price was fixed at Rs304,117.53 per tonne or Rs3,588.59 for an 11.8kg domestic cylinder for April against Rs225,837 per tonne or Rs2,664.88 for an 11.8kg in March.

The notification said the new prices would remain in effect until April 30.

The Ogra said that as compared to the previous month, Saudi Aramco-CP increased by 44pc, while the average dollar exchange rate slightly decreased by 0.11pc, resulting in an increase in LPG consumer price by Rs923.71 per 11.8kg cylinder (34.66pc).

The per kg increase in LPG consumer price is Rs 78.28, it said.