LPG price increased

ISLAMABAD: The government on Thursday while increasing LPG prices notified it at Rs1332.48 per 11.8 Kg cylinder for the consumers.

Earlier, the government had also increase petroleum prices up to 10pc what the economists believe that it would also increase the prices of other consumer items and then jack up inflation.

A notification issued by OGRA stated that in exercise of the powers conferred by section 6 (2) (r) of OGRA Ordinance 202(XVII of 202) read with Rule 18(1) of LPG (Production &Distribution) Rules 2001, the OGRA hereby notified in respect of indigenous LPG, maximum producers prices, margin of marketing and distribution companies and consumer price as conveyed by the Ministry of Energy (Petroleum Division) vide letter No LPG-6 (11)/2017-Policy dated 30th January 2018 and letter No.LPG-6 (1)/2018-Policy dated 1st February 2018.

According to the notification, producers price of LPG (propane 40pc and butane 60pc-- two components of LPG— has been determined at 56845.37 per metric ton (MT). This producers’ price included excise duty of Rs85/MTon while excluding Petroleum Levy. And under this head, the producer price of 11.8 Kg cylinder has been worked out at Rs670.78.

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 Rs96514.37/MT and the 11.8 Kg cylinder price is Rs1138.87. GST of Rs16407.44/MT will be imposed and Rs193.61 for 11.8 Kg cylinder.

Last year the Petroleum Ministry recommended prices of Rs1100 per 11.8kg LPG cylinder, the OGRA determined the prices of LPG will be Rs910 per cylinder. However a summary moved to the Ministry of Finance by the Petroleum Division on November 2, 2017 Secretary Petroleum has proposed levying Rs4669 regulatory duty on per MT of imported LPG.

The summary further said that to meet the revenue collection target of Rs2b set out as petroleum levy on LPG for FY 2017-18 by Finance Division, this ministry, as mandated by Petroleum Ordinance 1961, was in the process of imposition of levy on locally produced/extracted LPG at the rate of Rs4669/per MT under the law w.e.f November 1, 2017.