April 05, 2022 (MLN): The price of Liquified Liquefied Petroleum Gas (LPG) has been slashed by Rs40 per kilogram mainly dur to the reduction in production cost of Oil and Gas Development Company Limited (OGDCL), Chairman LPG Distributors Association Irfan Khokhar informed media on Tuesday.
In addition to it, the price of the domestic cylinder is dropped by Rs467 while the commercial cylinder price reduced by Rs1,796.
The State-owned OGDCL has slashed the price of LPG by a substantial margin. The production price of LPG has been reduced by Rs39,552 per metric tonne to Rs39.5 per kg. The production price of LPG issued by OGRA on March 31, 2022, was fixed at Rs171,551.81 per MT, Rs171.5 per kg, Rs2,024 for domestic cylinder and Rs7,788 for the commercial cylinder.
On March 5, 2022, the OGDCL fixed the production price of LPG at Rs 132,000 per metric tonne, Rs132 per kg, Rs1,558 for domestic cylinders and Rs5,993 for commercial cylinders.
Mr Khokhar has reiterated that all taxes on LPG should be abolished. He asserted that as LPG is a by-product of crude oil, which has no value so the government of Pakistan is requested to fix the local LPG production price at Rs 40,000 per tonne and 50 percent of imported LPG must be included.
The LPG Distributors Association has called for equal distribution of locally produced LPG among all LPG marketing companies under the PPL formula. According to the formula proposed by the LPG Industries Association of Pakistan, the price of LPG can be reduced by up to 50%.