The Oil and Gas Regulatory Authority (Ogra) has jacked up the price of indigenous liquefied petroleum gas (LPG) by Rs 95 per 11.8kg domestic cylinder for the month of March 2019. A notification issued by the Ogra stated that the new price of 11.8kg domestic cylinder would now be Rs 1,522.65, which was Rs 1,427.63 in February. However, contrary to the government's notified prices, the LPG is being sold at exorbitant prices, signalling towards weak administrative control of the government machinery.
Currently, in different parts of the country including main urban centres, the LPG is being sold for more than Rs 2,300 per 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 Rs 70,620.09 per metric tonne (MT). This producers' price included excise duty of Rs 85/metric tonne, excluding petroleum levy. And under this head, the producer price of 11.8kg cylinder has been worked out at Rs 833.32.
As per the notification, the marketing/distribution margin has been set at Rs 35,000/MT and Rs 413/11.8kg cylinder, a petroleum levy of Rs 4,669/metric tonne will also be charged which will be Rs 55.09 for 11.8kg cylinder. Prior to General Sales Tax (GST) imposition, the consumer price (Ex-GST) will be Rs 110,289.09/metric tonne and the 11.8kg cylinder price is Rs 1301.41. The GST of 17 percent or Rs 18,749.15/metric tonne will be imposed and it will be Rs 221.24 for 11.8kg cylinder.
Meanwhile, an Ogra spokesman said that violation of government notified prices would be met with strict action. The Ogra along with the provincial governments had started a crackdown on the sale of LPG at higher prices, the spokesman added.
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