OGRA says gas prices on the rise in international market
Report by Wahab Kamran
The Oil and Gas Regulatory Authority has increased the price of Liquid Petroleum Gas by Rs13 per kg taking the price of a domestic cylinder to Rs2559.53.
According to a notification issued Monday, the new prices will be effective from November 1, 2021. After the new rates are implemented, commercial cylinder will cost Rs9,847.
OGRA said that LPG prices have been increased due to a surge in gas rates across the globe.
In the last six months, LPG prices have seen a 53% increase. Earlier this year in May, a cylinder, for household purposes, cost Rs1,572 which surged over Rs2,000 by October.
Documents released by the authority revealed that if 17% sales tax and Rs5 petroleum levy is removed, it will bring relief to the consumers.
In May, the import price of LPG was Rs74,223 per metric tonnes. By October, the rates increased to a whopping Rs134,000, OGRA added.
The LPG prices have gone up by Rs44 per kg since July 1. On June 30, LPG was Rs151 per kg which went up by Rs19 per kg on July 1. Then on September 1, the Oil and Gas Regulatory Authority increased the prices by Rs5. Later, on September 29, marketing companies increased LPG prices by Rs20 per kg.
Although it’s only OGRA that has the authority to increase the LPG prices in practice, marketing companies increase the gas prices themselves.
The government recently increased the price of petrol by Rs10.49 to a record high of Rs137.79 as well.