The Oil & Gas Development Company (OGDCL) has slashed the price of Liquified Petroleum Gas (LPG) by Rs. 40 per kg.
The price reduction has been caused by the reduction in the production cost of the company, said Chairman LPG Distributor Association Pakistan, Irfan Khokhar. The production price of LPG was reduced by Rs. 39,552 per metric tonne, Rs. 39.5 per kg, Rs. 467 per domestic cylinder and Rs. 1,796 per commercial cylinder.
The production price of LPG issued by OGRA on 31 March 2022 was fixed at Rs. 171,551.81 per metric tonne, Rs. 171.5 per kg, Rs. 2,024 for domestic cylinders and Rs. 7,788 for the commercial cylinder.
However, five days later on 5 April 2022, OGDCL set the production price of LPG at Rs. 132,000 per metric tonne, Rs. 132 per kg, Rs. 1,558 for domestic cylinders and Rs. 5,993 for the commercial cylinder.
In its press release, the LPG Industries Association of Pakistan said that LPG is the fuel of the poor, and all taxes on LPG should be abolished. The Association was of the view that LPG is a by-product of crude oil, which has no value and should be permanently kept at Rs. 40,000 per metric tonne and 50 percent of imported LPG should be included.
The association further suggested that the locally produced LPG should be distributed equally among all LPG marketing companies under Pakistan Petroleum Limited (PPL) formula. According to the formula proposed by the LPG Industries Association of Pakistan, the price of LPG can be reduced by 50 percent.
