The Oil and Gas Regulatory Authority (Ogra) has reduced prices of Liquefied Petroleum Gas (LPG) by Rs 2 per kg and Rs 20 per cylinder. "Ogra has determined maximum base-stock price of LPG at Rs 31,949.45 per MT effective March 3," the regulator said in its determination sent to the chief executives of petroleum companies.
According to the FOB Saudi ARAMCO contract the prices of propane and butane were $526 each per MT with the ratio of 40:60. Monthly average of the mean of the daily bid and offer of weighted average exchange rate quoted by the State Bank of Pakistan for February 2007, has been previously adopted pending clarification from the federal government which has already been sought.
Chairman LPG Distribution Association, Irfan Khokhar has appreciated Ogra's decision to reduce prices. He said that 28,500 MT LPG has been imported within two months to bridge the supply and demand gap.
He also demanded that the government should investigate bungling of Rs 78 billion against 'gas mafia' and licences of those marketing companies should be cancelled which violated rule 3.5.3 by the oil marketing companies. He said that Ogra has reduced LPG's production prices by Rs 1628 per MT which is a welcoming step. With the inclusion of 15 percent GST and Rs 85 central excise duty (CED) the price of LPG would be Rs 36839.62 per MT.