LPG Prices Surge by Rs45.18 per Cylinder in December
Karobar
In a move impacting both commercial and household consumers, the caretaker government has approved an increase in the price of liquefied petroleum gas (LPG) by Rs3.83 per kilogram for December. This decision, attributed to a rise in the average dollar exchange rate, was communicated by the Oil and Gas Regulatory Authority (Ogra).
According to Ogra, LPG prices have surged to Rs254.86 per kilogram, marking an increase from Rs251.03 in the previous month. The adjustment affects various cylinder sizes, with implications for both domestic and commercial consumers.
The producer price of LPG, linked to the Saudi Aramco-CP and US dollar exchange rate, has remained constant. However, due to a 1.87% increase in the average dollar exchange rate, consumer prices have risen by 1.5%, equating to Rs45.18 for an 11.8 kg cylinder.
Following the hike, the cost of a domestic cylinder has escalated from Rs2,962.17 to Rs3,007.35. Simultaneously, the price of a 45.4 kg commercial cylinder will experience a substantial increase of Rs173.882.
Ogra has established the producer price of LPG, assuming a composition of 40% propane and 60% butane, at Rs176,314.44 per tonne. This figure 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 Rs2,080.51. Prior to the imposition of an 18% general sales tax (GST), the producer price would have been Rs180,983.47 per tonne, translating to a price of Rs2,135.60 for an 11.8 kg cylinder. The GST on Rs180,983.47 per tonne would have been Rs32,577.02 or Rs384.41 per 11.8 kg cylinder.
Furthermore, Ogra has computed a maximum producer price of Rs213,560.49 per tonne or Rs2,520.01 per 11.8 kg cylinder. The marketing, distribution, and transportation margin have been set 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, resulting in a total margin of Rs413 per cylinder.
Consumers are also subjected to an 18% 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.
This price adjustment comes after a series of fluctuations in LPG prices, with the caretaker government implementing increases in September and October, followed by a decrease in November.
