ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) has increased on Friday the Liquefied Petroleum Gas (LPG) price by Rs 2 per kg for both commercial and domestic cylinders for July as compared with June prices despite, reduction in prices internationally.
The Saudi Aramco Contract Price has shown a reduction of $ 25, from $ 750 in June to $ 725 in July 2022 as exchange rate against the US dollar has not translated into Ogra worked out prices and cost of imported LPG.
The price will impact a large number of the population as only 23 percent has been supplied gas through a pipeline and the rest rely on LPG and other fuels.
The rate of domestic LPG cylinder has been raised from Rs 218 to Rs 220 per kg or an increase from Rs 2,581 to Rs 2,601. Commercial cylinder price has also been increased from Rs 9,932 to Rs 10,007 or Rs 75. A notification in this respect has already been issued.
In Finance Bill 2022-23, the government has imposed petroleum levy at the rate of Rs 30,000 on metric ton. LPG Industries Association Chairman Irfan Khokhar said the task could be achieved by following the formula of the association, which is as follows:
Fix/ freeze the LPG producer base price at Rs 40,000 per metric ton.
Increase the local LPG production.
Above all, Asia’s largest plant Jamshoro Joint Venture Limited (JJVL), which has been closed for two years and has caused losses of Rs 50 billion to the national exchequer, should be started immediately.
The LPG is 65 percent cheaper than petrol and diesel which can be further made cheaper for the poor LPG consumers as per our formula.
Copyright Business Recorder, 2022
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