ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) has allowed an increase of Rs47 for 11.8 kg per domestic cylinder and Rs180 per commercial cylinder for the month of July.

The hike is attributed to CP price hike from Aramco's CPs $340 to $550, and the Sui Southern Gas Company (SSGC)'s refusal to extend contract with Jamshoro Joint Venture (JJVL).

The LPG is consumed in almost 74 percent of those areas where system gas is not available.

The regulator has allowed increasing price of LPG from Rs110 per kg in June to Rs114 per kg in July, making the domestic cylinder price Rs1, 345 against Rs1, 298 fixed by the regulator for July.

The price of commercial cylinder also increased from Rs4, 995 to Rs5, 175 for the current month.

The production cost increased from Rs54, 372 to Rs57, 757.

Earlier, some media reports claimed that the LPG prices had already increased, than the government announced price of LPG cylinder.

Spokesman OGRA Imran Ghaznavi tweeted, "LPG prices in market are according to OGRA notified prices, certain vested interest people to trying to feed misleading information to media. Any one responsible selling above notified prices will be dealt according 2 law. OGRA & District administration will take action in this regard."

Chairman LPG Industries Association of Pakistan Irfan Khokhar said the non-renewal of the LPG processing agreement with the JJVL by the SSGC was not conducive to the national exchequer.

Copyright Business Recorder, 2020