OGRA increases LPG price by Rs2/kg for Nov

ISLAMABAD: After reducing LPG prices for two consecutive months, the Oil and Gas Regulatory Authority (OGRA) on Tuesday increased its prices by Rs2 per kilogram for November 2022.

According to the OGRA notification, the price of 11.8kg domestic cylinder has gone up by Rs35 while the price of a commercial cylinder increased by Rs134.

After this increase, LPG would now be available at Rs204/kg, while domestic cylinders would be available at Rs2,409. A commercial cylinder would now cost Rs9,269.

In October 2022, LPG was available at Rs202/kg. A domestic cylinder was sold at Rs2,374 and commercial ones were available at Rs9,235.

It is to be noted that for October 2022, the government slashed LPG prices by Rs10.34/kg for domestic and commercial consumers. Similarly, for September 2022, it reduced its price by Rs6/kg. Now, for November, the price has been increased by Rs2/kg.

LPG is being used for cooking purposes in areas where piped natural gas is not available. Saudi Aramco has recently also reduced propane and butane prices. Propane and butane are two major components of LPG, which the Middle Eastern oil producers sell to Asian countries.

Meanwhile, LPG Industries Association Chairman Irfan Khokhar said the country was already facing gas shortage, and the government’s insane policies coupled with high number of taxes have put a negative impact on the LPG industry. “LPG distributors have been paying over Rs6 billion per annum under the head of taxes,” he added. The government should waive off taxes in order to ensure provision of cheap LPG to the consumers during winter season, Khokhar demanded.

He suggested the government devise a comprehensive policy of LPG import to meet the shortfall of natural gas. Demanding from the government to restart the operation of LPG production plant of the Jamshoro Joint Venture Limited (JJVL) in order to ensure smooth supply of cheap LPG on a sustainable basis, Khokhar said that the closure of JJVL Jamshoro plant has incurred a loss of billions of rupees in addition to hike in LPG prices.

He also said the government should introduce stringent legislation against the selling and buying of substandard LPG cylinders, and the government should also take strict action against the manufacturers of substandard LPG cylinders.

“There are several factories in Gujranwala, which are manufacturing poor quality LPG cylinders,” he pointed out.

The government should also lift a ban on LPG use in vehicles which would lower the public transport fares, the chairman of the LPG Industries Association said.