Interim govt raises 11.8-kg LPG cylinder price by Rs18.52 for Jan
ISLAMABAD- The interim government in Pakistan has announced yet another increase in the price of the 11.8-kilogram liquefied petroleum gas (LPG) cylinder. This marks the fourth time since its establishment that the government has raised the price. Effective for January 2024, the LPG cylinder price will be elevated by Rs18.52.
According to a notification issued by the Oil and Gas Regulatory Authority (OGRA), the price of liquefied petroleum gas (LPG) has been raised by Rs1.57/kg. Previously priced at Rs254.86/kg in December, it will now be set at Rs256.43/kg. The LPG producer price is influenced by the Saudi Aramco-CP and the dollar exchange rate. While the Saudi Aramco-CP has increased by 1.6 percent compared to the previous month, the average dollar exchange rate has decreased by 0.86 percent. This fluctuation has contributed to the overall increase in LPG consumer price by Rs18.52/11.8-kg cylinder (0.61 percent), as stated by OGRA on Monday.
The revised pricing will impact various cylinder sizes differently. The domestic cylinder price will rise by Rs18.52/11.8-kg, reaching Rs3,025.87/11.8-kg in January from Rs3,007.35 in December. Additionally, the price of the 45.4-kg commercial cylinder will increase by Rs71.278.
It is worth noting that over the past few months, the interim government has consistently raised the price of LPG. In September, there was a significant increase of Rs39 per kg (19.37 percent). In October, the prices were further raised by 8.7 percent or Rs20.86 per kg. However, for the month of November, LPG prices saw a reduction of Rs9.95 per kg. Lastly, in December, the interim government hiked the price by Rs3.83 per kg.
OGRA has determined that the producer price of LPG, assuming a composition of 40 percent propane and 60 percent butane, is Rs177,644.20 per tonne. This price includes an excise duty of Rs85 per tonne, excluding the petroleum levy of Rs4,669 per tonne. Consequently, the total cost for an 11.8-kg cylinder amounts to Rs2,096.20. If the general sales tax (GST) of 18 percent were not imposed, the producer price would have been Rs182,313.20 per tonne, resulting in a price of Rs2,151.30/11.8-kg cylinder. The GST on Rs180,983.47 per tonne would have been Rs32,816.38 per tonne or Rs387.23 per 11.8- kg cylinder.
OGRA has also set a highest possible producer price of Rs215,129.58 per tonne or Rs 2,538.53 per 11.8-kg cylinder. The marketing, distribution, and transportation margin have been allocated at Rs35,000 per tonne, comprising a marketing margin of Rs17,000 per tonne, distribution margin of Rs10,000 per tonne, and transportation margin of Rs8,000 per tonne. This results in a total margin of Rs413 per cylinder. In addition, consumers bear an 18 percent GST of Rs6,300 per tonne or Rs74.34 per 11.8-kg cylinder on the marketing and distribution margin of Rs35,000 per tonne.
The rise in LPG prices will have repercussions on consumers across the country. It remains to be seen how this latest increase will affect households and businesses reliant on LPG.
Despite concerns and protests surrounding the escalating prices, the caretaker government has defended its decision, stating the need to align prices with market dynamics and international factors.
It is important for consumers to stay informed about the changing LPG prices and manage their budgets accordingly. As the interim government continues to navigate economic challenges, monitoring the impact of these price hikes will become crucial for citizens.
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