Gas sellers are now capitalizing on the government’s recent LPG price hike, leading to soaring rates for Liquefied Petroleum Gas. The official price of LPG for August has been set at Rs. 201 per kg, marking a significant increase from Rs. 177 per kg in July. The surge in prices is attributed to the escalating demand for LPG in areas relying on piped gas, amidst severe commodity shortages and delayed imports.
Consumers Face the Brunt of Double Taxation
The notification from the Oil and Gas Regulatory Authority (OGRA) reveals that the LPG price for an 11.8 kg domestic cylinder has reached Rs. 2,373.64 for August 2023, compared to Rs. 2,092.13 in July, representing a substantial Rs. 281 increase within a month. The producer price of LPG is set at Rs. 159,855.79 per ton, while consumers have to pay Rs. 201,155.79 per ton. Consequently, the 11.8 kg cylinder’s price for the producer has surged to Rs. 1,886.3, up from Rs. 1,604.79 last month.
Government’s IMF Commitments Result in Fuel Price Surge
Apart from the LPG price hike, the government has also announced a significant increase in petroleum product prices as part of its commitments to the IMF. The price of petrol has risen by Rs. 19.95 per liter, while the price of hi-speed diesel has increased by 19.90 per liter. Consequently, the new prices for petrol and HSD are Rs. 272.95 per liter and Rs. 273.40 per liter, respectively.
