Following a hefty increase in POL prices, the government on Tuesday hiked the rate of indigenous liquefied petroleum gas (LPG), also called a poor man’s fuel, by Rs60/kg which will enhance the price of 11.8kg domestic cylinder by approximately Rs704.
As per the notification issued by the Oil and Gas Regulatory Authority (OGRA) the price of indigenous liquefied petroleum gas (LPG) has been increased by more than 29pc or Rs60/kg for domestic and commercial consumers for the month February 2023.
According the notification, the price of LPG has been increased from Rs204/ kg in January to Rs264/kg in February. As a result of the hike, the price of 45.4kg commercial cylinder will go up by Rs2,724 and will be sold at Rs11,985 in February against the price of Rs9278 in January.
Similarly, the domestic 11.8kg cylinder price will go up by Rs703.57 from Rs2,411.4 in January to Rs3,115 in February. As per the OGRA calculation, the producers’ price of LPG (propane 40 percent and butane 60 percent) has been determined at 185933.4/ton. This price included excise duty of Rs85/ton while excluding the petroleum levy of Rs4,669/ton. Under this head, the producer price of Rs2194/11.8kg cylinder has been worked out. The marketing/ distribution/transportation margin has been set at Rs35,000 per ton (Marketing Margin of Rs17000/ton, distribution margin of Rs10,000/ton, and transportation margin of Rs8000/ton) or Rs413 per cylinder. Prior to imposition of a 17% general sales tax, the consumer price would be Rs190,602.37/ton, while the price of the 11.8kg cylinder is Rs2249 per cylinder.
