Govt slashes LPG price by Rs15.40 per kilogram for June

ISLAMABAD: The government has slashed the price of liquefied petroleum gas (LPG) by Rs15.40/kilogram for the month of June, an official statement said on Friday.

A notification issued by Oil and Gas Regulatory Authority (OGRA) said the LPG prices had been decreased by 11.43 percent from previous Rs133.91 per kilogram to Rs118.51.

The decision brings the price of 11.8 kilogram (domestic) cylinder of this smokeless fuel down by Rs181 to Rs1399.39 for June 2019 from Rs1,580.14 in May.

As a result, the price of commercial cylinder has reduced by Rs650 to Rs5,383.

The notification shows the producers' price of LPG (propane 40 percent and butane 60 percent) has been determined at Rs61691.99 per metric ton (in May it was Rs74784.75 per metric ton). This producers’ price includes excise duty of Rs85/ mertric ton excluding Petroleum Levy. And under this head, the producers' price of 11.8 kilogram cylinder has been worked out at Rs727.97.

Marketing/distribution margin has been set at Rs35,000 per metric ton or Rs 413 per 11.8 kilogram. A Petroleum Levy of Rs4,669 per metric ton will be also charged, while it will be Rs55.09 for 11.8 kilogram cylinder.

Prior to general sales tax (GST) imposition, the consumer price (ex-GST) will be Rs101,360.99 per metric ton (in May it was Rs114,453.75) and the 11.8 kilogram cylinder price will be Rs1399.39. The GST of 17 percent or Rs101,360.99 per metric ton will be imposed and it will be Rs203.33 for 11.8 kilogram cylinder. The final price per metric ton will be Rs118,592.36 or Rs1399.39 per domestic cylinder.

It is pertinent to mention here that the LPG is being sold at higher rate in the open market.

Despite the fact that the government notifies its prices every month, it is being sold at exorbitant prices in open market against what the government notifies.

In February 2018, the government had notified the price at Rs1332.48 per 11.8 kilogram cylinder, in March it was Rs1286.37, April Rs1282.37, May Rs1352.26, June Rs1443.42, July Rs1479.44, August Rs1564.98, September Rs1613.43, October 1673.24, November 1509.03, December 1338.78.

In January 2019, it was Rs1361.7 per cylinder, in February Rs1427.63, March Rs1522.65, April Rs1,563.92, and for the month of May Ogra-determined price was Rs 1580.14.