Govt cuts LPG prices by Rs7.43 per kg

ISLAMABAD: The government on Monday slightly reduced the price of Liquefied Petroleum Gas (LPG) amid reports about a possible ‘massive’ increase in petrol prices, expected to be announced tonight.

According to a notification issued by the Oil and Gas Regulatory Authority (OGRA), the LPG price has been cut by Rs7.43 per kilogram for the month of July.

With this cut, the maximum consumer price has been set at Rs233.10 per kg.

The notified decrease has brought down the price of a domestic cylinder weighing 11.8 kg to Rs2,750.60.

This marks a reduction of Rs87.71 from the previous month, when the domestic cylinder was priced at Rs2,838.31.

According to OGRA, the LPG producer price is linked to the Saudi Aramco Contract Price (CP) and the US dollar exchange rate.

Since the Saudi Aramco-CP declined by 4.29% compared to June, and the average dollar exchange rate increased slightly by 0.47%, OGRA stated that this has resulted in a decrease of Rs87.71 in the consumer price of an 11.8 kg LPG cylinder (a 3.1% drop).

The LPG price cut follows an earlier notification OGRA issued on Sunday, placing an additional financial burden of around Rs85 billion on consumers by notifying a 50 per cent increase in fixed gas charges for all consumer categories, effective from July 1

It also notified 17 per cent increase in per unit gas sale prices for industrial, power and bulk users.

According to this notification, protected domestic consumers will have to pay fixed monthly charges of Rs600, which marks a 50pc increase.

Per unit gas prices were not changed for this category, but their minimum monthly bill was increased from Rs519 to Rs755. This amount is charged monthly even if the consumer do not consume a single unit of gas.

Meanwhile, the government is reportedly all set to to drop a fresh “petrol bomb” on public, with a major hike in petrol prices expected from July 1.

According to sources in the Petroleum Division, prices of petroleum products may rise by up to Rs15 per litre for the next 15 days.

Diesel is likely to go up by Rs 15 per litre, while petrol may increase by Rs 11 per litre.