The Oil and Gas Regulatory Authority (OGRA) has reduced the price of liquefied petroleum gas (LPG) by Rs. 9.95 per kg, resulting in a 3.8 percent decrease in the cost of an 11.8 kg domestic LPG cylinder for November.
According to OGRA’s notification, the new price for LPG is set at Rs. 250.98 per kg for November, down from Rs. 260.93 in October. The price of the 11.8 kg domestic cylinder has been adjusted to Rs. 2,962.17 for November, compared to Rs. 3,079.64 in the previous month.
OGRA’s calculations determine the producer price of LPG, which is composed of 40 percent propane and 60 percent butane, 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 of Rs. 31,992.9 per ton, the maximum producer price is calculated at Rs. 209,731.22 per ton for November. This results in a maximum producer price of Rs. 2,474.83 per kg for the 11.8 kg domestic cylinder.
For the consumer price, an additional margin of Rs. 35,000 per ton for marketing, distribution, and transportation, along with an 18 percent GST of Rs. 6,300 per ton on this margin, is added to the maximum producer price.
Therefore, the consumer’s maximum LPG price is set at Rs. 251,031.22 per ton (equivalent to Rs. 2,962.17 for the 11.8 kg cylinder) for November.
It’s worth noting that the government had previously increased LPG prices by Rs. 39 per kg in September and Rs. 20.86 per kg in October 2023. The current price reduction is attributed to the recovery of the Pakistani Rupee against the US Dollar in the previous month.
