The Oil and Gas Regulatory Authority (OGRA) has announced a reduction in the price of liquefied petroleum gas (LPG) for November. The price per kilogram has been slashed by Rs. 9.95, resulting in a decrease of Rs. 117.47 or approximately 3.8 percent for an 11.8 kg domestic cylinder.
The new pricing structure was determined after careful calculations by OGRA. The producer price of LPG, which consists of 40 percent propane and 60 percent butane, has been set at Rs. 173,069.32 per ton for November.
After adding a petroleum levy of Rs. 4,669 per ton and an 18 percent sales tax amounting to Rs. 31,992.9 per ton, the maximum producer price was calculated at Rs. 209,731.22 per ton. This resulted in a maximum producer price of Rs. 2,474.83 per kg for an 11.8 kg domestic cylinder for the current month.
For the consumer price, an additional Rs. 35,000 per ton was added for marketing, distribution, and transportation margin to the maximum producer price. An additional 18 percent GST (Rs. 6,300 per ton) on this margin was also included. Consequently, the maximum LPG price for consumers was fixed at Rs. 251,031.22 per ton, or Rs. 2,962.17 per 11.8 kg cylinder for November.
This price reduction comes after the government had previously increased the price of LPG by Rs. 39 per kg and Rs. 20.86 per kg for September and October 2023, respectively. The downward revision in rates is attributed to the recovery of the Pakistani Rupee against the US Dollar in the previous month.
The new price of LPG for November stands at Rs. 250.98 per kg, compared to Rs. 260.93 in October. The price for an 11.8 kg domestic cylinder has been set at Rs. 2,962.17 in November, down from Rs. 3,079.64 in October. This significant reduction in prices is expected to provide some relief to consumers amidst the ongoing economic challenges.