LPG price reduced by 1.65 percent

ISLAMABAD: The government has reduced the price of local liquefied petroleum gas (LPG) by 1.65 percent, or Rs22.27, for September 2019, translating into Rs1,327.76/11.8kg cylinder for the month. The new prices would be effective from Sunday.

The new price of 11.8kg domestic cylinder would now be Rs1,327.76, down from Rs1,350.03 in August, a notification of the Oil and Gas Regulatory Authority (OGRA) said. Last month in August, the government had increased LPG price by 1.44 percent or Rs19.11/cylinder over the previous month.

The producers’ price of LPG (propane 40 percent and butane 60 percent) has been determined at Rs56,504.52/ton (in August it was Rs58,116.72/ton). This price included excise duty of Rs85/ton, while excluding the petroleum levy. Under this head, the producer price of Rs666.75/11.8kg cylinder has been worked out.

Marketing/distribution margin has been set at Rs35,000/ton or Rs413/cylinder, a petroleum levy of Rs4,669/ton would also be charged, which would translate into Rs55.09/ cylinder. Prior to the imposition of general sales tax, the consumer price would be Rs96,173.52/ton (in August it was Rs97,785.72/ton), while the price of the 11.8kg cylinder was Rs1,134.84.

Additionally, a GST of 17 percent on Rs96,173.52/ton would be Rs16,349.50, or Rs192.92, for a cylinder. The final price per ton would be Rs112,523.02, or Rs1,327.76/cylinder.