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Pakistan: Domestic Gas Cylinder Cost Rs1500 For 11 kg


LPG price increased by Rs95 per cylinder

ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) on Friday increased the price of locally produced liquefied petroleum gas (LPG) by Rs95 per 11.8kg cylinder for March 2019.

According to a notification issued by Ogra, the new price of 11.8kg domestic cylinder will be Rs1,522.65, which would be applicable in March, compared to Rs1,427.63 per cylinder for February.

However, contrary to the government’s notified prices, LPG is being sold at exorbitant rates across the country due to weak administrative control of relevant state departments.

Civil Defence bans LPG decanting in urban areas

At present, LPG is being sold in the range of Rs1,800 to Rs2,300 per cylinder in different parts of the country, including main urban centres.

According to the Ogra notification, the producer price of LPG, which contained 40% propane and 60% butane, has been calculated at Rs70,620.09 per ton. The producer price includes excise duty of Rs85 per ton, excluding the petroleum levy.

Marketing and distribution margins have been set at Rs35,000 per ton and Rs413 per 11.8kg cylinder, and petroleum levy at Rs4,669 per ton and Rs55.09 per cylinder.

As cheaper gas resources dwindle, low tariffs may not be sustainable

Excluding general sales tax (GST), the consumer price will be Rs110,289.09 per ton and Rs1,301.41 per cylinder. With the levy of 17% GST, Rs18,749.15 will be added to the per-ton price of LPG and in the case of 11.8kg cylinder, the addition will be Rs221.24.

Meanwhile, an Ogra spokesman has warned that violation of the government notified prices would be met with strict action. “The regulator, along with provincial governments, has started a crackdown on the sale of LPG at higher prices,” the spokesman added.


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