The Oil and Gas Regulatory Authority (OGRA) on Monday announced a significant increase in the price of liquefied petroleum gas (LPG), raising it by Rs39 per kilogram for the month of September.
This hike translates to a nearly Rs460 increase or a 20 percent surge in the cost of an 11.8-kilogram domestic LPG cylinder.
In an official notification, OGRA stated that the price of LPG for September has been set at Rs240 per kilogram, up from Rs201 in August. The notification also stated that the price of an 11.8-kilogram domestic LPG cylinder was adjusted to Rs2,833 for September, compared to Rs2,373 in the previous month.
OGRA’s calculations revealed that the producer price of LPG, consisting of 40 percent propane and 60 percent butane, now stands at Rs163,827 per tonne for September, as opposed to Rs130,802 per tonne in August. This new price also incorporates an excise duty of Rs85 per tonne.
Meanwhile, the producer price for the 11.8-kilogram cylinder amounted to Rs2,346, an increase from Rs1,886 in the prior month.
When factoring in an additional Rs4,669 per tonne in petroleum levy and an 18 percent sales tax amounting to Rs30,329 per tonne for September, the maximum producer price reached Rs198,826 per tonne for the month.
This calculation resulted in a maximum producer price of Rs2,346 per kilogram for the 11.8-kilogram domestic cylinder.
For the consumer price, an additional Rs35,000 per tonne was added to account for marketing, distribution, and transportation margins, along with another 18 percent Goods and Services Tax (GST) of Rs6,300 per tonne applied to this margin.
As a result, the maximum LPG price for consumers was fixed at Rs240,126 per tonne, equivalent to Rs2,833 per 11.8-kilogram cylinder for September.