ISLAMABAD: The government on Monday increased indigenous LPG prices of 11.8Kg cylinder by Rs59.8 rupees (or 3.7 percent) over previous month and notified it at 1673.24 rupees for the consumers that would be effective from today (Tuesday).
According to the notification issued here by Ogra, the producers price of LPG (propane 40pc and butane 60pc-- two components of LPG) has been determined at 81,528 per metric ton (MT). This producers’ price included excise duty of Rs85/M. Ton while excluding Petroleum Levy. And under this head, the producer price of 11.8 Kg cylinder is has been worked out at Rs962.
Marketing/Distribution margin has been set at Rs35000/MT and Rs413/ 11.8 Kg cylinder, a Petroleum Levy Rs 4669 per MT will be also charged which will be Rs55.09 for 11.8 Kg cylinder.
Prior GST imposition, the consumer Price (Ex-GST), the price will be Rs 121,197/MT and the 11.8 Kg cylinder price is Rs1430.12. GST of 17 pc of Rs20,603.48/MT will be imposed and Rs243.12 for 11.8 Kg cylinder. Since February 2018, when LPG price was Rs1332.48/11kg cylinder has now reached up to Rs1673.24 indicating an increase by 340.76 rupees or 25.5 percent.
OGRA in March had notified the price at 1286.37/11kg cylinder, April (Rs1282.37), May (Rs1352.26), June (Rs1443.42), July (Rs1479.44), August (Rs1564.98) and in September it was notified at Rs1613.43/11kg cylinder.
Meanwhile, Chairman LPG Distributors Association of Pakistan Irfan Khokhar said that currently the import of LPG is at a standstill that’s why the prices of local LPG is going up. He said that government has failed to issue tax reduction notification as agreed with the LPG importer association and that is the reason that LPG association is reluctant to import LPG.
Khokhar said that if the government issued the notification for the tax reduction on imported LPG then the prices of LPG will come down by Rs200 per Cylinder.
It is pertinent to mention here that the government has directed Ogra to conduct an audit of the LPG companies; however it is unlikely to achieve any milestone unless the LPG policy 2016 is implemented in letter and spirit.
The non implementation of LPG policy 2016 and the imposition of Regulatory Duty on the imported LPG gas landed the LPG consumers in the current crises. Recently LPG mafia increased LPG price for 4th time which has reached to record increase in consumer prices and prices have reached to 210 per kg in Gilgit Baltistan & other northern areas, Rs 190 in AJK, Nathiagali etc, Rs 170 per kg in Jhelum, Multan, Rajanpure and Swat etc. The prices during the same period last year were around Rs 80 to Rs 100 per kg or Rs 880 to 11 per cylinder.