Gas sellers are now selling Liquefied Petroleum Gas (LPG) at jacked-up rates after the government on Tuesday notified an Rs. 4.89 per kg hike in the rate list.

After yesterday’s update, the official price of LPG is now Rs. 233.89 per kg for the month of May. The hike comes as demand for the fuel gets out of control in areas utilizing piped gas amid severe commodity shortfalls and delayed imports.

The OGRA notification states that the LPG price for an 11.8 kg domestic cylinder has increased to Rs. 2,759.89 for May 2023, up from Rs. 2,702.2 in April, taking domestic cylinder prices up by Rs. 57.70 in the last month alone. Meanwhile, the price of the commercial cylinder (45.4kg) will go up substantially and be sold at Rs. 10,618.606 in May 2023, up from Rs. 10,397 in April 2023. The producer price of LPG (propane 40%, butane 60%) has been determined to be Rs. 158,541.88 per ton. This price included an excise duty of Rs. 85 per ton but did not include the petroleum levy of Rs. 4,669 per ton.

Expectedly, it will raise the cylinder’s price to Rs. 1,925.89, while the producer price to Rs. 163,210.88 per ton. With an 18 percent general sales tax on the fuel, the producer price of LPG will see an increase of roughly Rs. 29,377.96 per ton, or Rs. 346.66 per 11.8 kg cylinder.

The marketing/distribution/transportation margin has been set at Rs. 35,000 per ton (Rs. 17,000/ton marketing margin, Rs. 10,000/ton distribution margin, and Rs. 8,000/ton transportation margin), or Rs. 413 per cylinder.

It bears mentioning that the nation is being taxed twice on the fuel, as they must pay 18 percent GST per cylinder on top of the marketing/distribution margin of Rs. 35,000 per ton.

Source: Pro Pakistani