The Oil and Gas Regulatory Authority (OGRA) has raised the price of indigenous liquefied petroleum gas (LPG) by Rs. 20.84 per kg, leading to an increase of Rs. 246 or approximately 8.6 percent in the price of an 11.8 kg domestic cylinder for October.
According to OGRA’s notification, the price of LPG for October is set at Rs. 261 per kg, up from Rs. 240 in September. As a result, the price of an 11.8 kg domestic cylinder for October will be Rs. 3,079, compared to Rs. 2,833 in September.
OGRA’s calculation for October determined the producer price of LPG (with propane at 40 percent and butane at 60 percent) to be Rs. 181,506 per tonne. Adding Rs. 4,669 per tonne of petroleum levy and 18 percent sales tax of Rs. 33,511 per tonne for October, the maximum producer price was calculated at Rs. 219,686 per tonne for the month. Consequently, the maximum producer price for an 11.8 kg domestic cylinder was calculated to be Rs. 2,592 per kg for October.
For the consumer price, an additional Rs. 35,000 per tonne of marketing, distribution, and transportation margin was added to the maximum producer price, along with another 18 percent GST (Rs. 6,300 per tonne on this margin). Thus, the maximum LPG price for consumers was set at Rs. 260,986 per tonne (or Rs. 3,079 per cylinder of 11.8 kg) for October.
It’s worth noting that last month, OGRA increased the price of indigenous LPG by Rs. 39 per kg.