Oil and Gas Regulatory Authority (OGRA) has jacked up the price of indigenous liquefied petroleum gas (LPG) 11.8kg domestic cylinder by Rs 65 for the month of February 2019. A notification issued by the OGRA said new price of a 11.8kg domestic cylinder would be Rs 1426.70, which was Rs 1361.70 in January.
However, contrary to the government's notified prices, the LPG is being sold at exorbitant prices signalling towards the weak administrative control of the government machinery. Currently, in parts of the country including main urban centres, the LPG is being sold at more than Rs 1,950/11.8kg cylinder.
According to the OGRA notification, the producers' price of LPG (propane 40 percent and butane 60 percent - two components of LPG) has been determined at 63,738.16/metric tonne (MT). This producers' price included excise duty of Rs 85/metric tonne, excluding petroleum levy. Under this head, the producers' price of 11.8 kg cylinder has been worked out at Rs 752.11.
As per notification, the marketing/distribution margin has been set at Rs 35000/MT and Rs 413/ 11.8kg cylinder; and that petroleum levy of Rs 4m669/ metric tonne will be also charged which will be Rs 55.09 for 11.8kg cylinder.
Prior to General Sales Tax (GST) imposition, the consumer price (ex-GST), the price will be Rs 103,407.16/metric tonne and the 11.8kg cylinder price is Rs 1,220.20. The GST of 17 percent or Rs 17,579.22/metric tonne will be imposed and it will be Rs 207.43 for 11.8kg cylinder.
Meanwhile, an OGRA spokesman said the violation of government notified prices would be met with strict action. "The OGRA along with provincial governments have started a crackdown against the sale of LPG at higher prices, while more than 200 companies have been issued show cause notices in this regard," the spokesman added.
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