ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) has yet to revise per kg price of liquefied petroleum gas (LPG) following drastic reduction in the gas prices by the local LPG producers with effect from May 25, 2024.
The development comes after Oil and Gas Development Company (OGDCL) has reduced the production cost following the arrival of three ships carrying imported LPG, sources said.
The prices are expected to see further reduction in the coming days as another ship is about to set to dock at Karachi Port.
According to the notification of the OGDCL, the LPG base price with effect from May 25, 2024, has been declined to Rs130,000 per metric ton for all OGDCL fields (operating and non-operating) in Northern regions from Rs137,000 per metric ton for all OGDCL fields (operating and non-operating) in Southern regions, inclusive of exercise duty and exclusive of taxes and levies.
The LPG distribution companies estimate that the new price of LPG should be fixed at Rs180 per kg against Ogra notified price at Rs238.46 for the current month.
The price of LPG should plunge by Rs59 per kilogram. However, consumers’ cylinders in the market are available at Rs300 per kg.
According to a notification of Ogra, price for LPG producers was fixed at Rs162,417.56 per MT exclusive of taxes and levies for May 2024. Maximum LPG cylinder price was fixed at Rs2,813.85 or Rs238.46 per kg for the month of May 2024.
A spokesman of the Ogra said as per LPG Policy 2016, the LPG prices will be regulated with a maximum price at all levels of the supply chain.
However, producers, marketing companies and distributors may sell below the maximum price determined from time to time, he added.
He further clarified that the media reported incorrectly regarding the reduction in LPG prices as Ogra always issue price notification on the last day of the month.
According to Irfan Khokhar, chairman LPG Distribution Association, the consumption of LPG is around 5,000 ton per day against local production of 2,000 to 25,000 ton per day.
He hinted import of LPG under long-term contracts may disturb after a reduction of local LPG prices in the country.
Copyright Business Recorder, 2024