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No more increase in LPG price, govt directs OGRA

ISLAMABAD: To provide relief to common man in the holy month of Ramazan, the government has directed the Oil and Gas Regulatory Authority (OGRA) to maintain the current LPG (Liquefied Petroleum Gas) price despite the fact that internationally the prices of LPG have increased by 15 percent.

LPG price in the international market has shown an increase of more than 15 percent over the past month, which would have a substantial impact on the LPG selling price for the consumers.

In turn, the OGRA has directed all the marketing companies to ensure continuing adequate supplies of LPG to the consumers at a price which should not exceed the reasonable price determined by the OGRA i.e. Rs 624 per domestic cylinder of 11.8 kg all over the country except Northern areas, FATA and AJK where the price will be Rs 654 per domestic cylinder of 11.8 kg.

The government has formulated LPG Policy 2007, with the objective of increasing LPG supplies in the country through increase in local production as well as imports.

Accordingly, the price for the local producers has been linked to the FOB (Freight on Board) price of LPG (Saudi Aramco) in the international market. The consumer price of LPG although is deregulated and fixed by LPG marketing companies on a competitive basis, however, OGRA has powers to determine reasonable price for consumers on the basis of producer price after giving a reasonable profit margin to the marketing companies as well as distributors. staff report

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