In the wake of rising world market prices and rupee depreciation, LP Gas companies have made a request from the government authorities to increase the price of a 12.5 kg domestic LP gas cylinder by at least Rs. 407 with immediate effect, official sources said.
In addition, prices of the 5 kg domestic LP gas cylinder will also be increased proportionately.
Quoting the Saudi ARAMCO price index, LP gas companies noted that the world market price of Propane has increased to US$ 605 per metric ton.
Accordingly, the current price of the 12.5 kg domestic cylinder, which was at Rs. 1,493, will go up to Rs. 1,900. However, the prices will vary according to different districts.
Price applications submitted by gas companies will have to be passed by the Cabinet of Ministers. The determination of the price was assigned to the Cost of Living Committee. Considering the rising worldmarket prices, it is likely to be approved and announced by the Consumer Affairs Authority (CAA) in consultations with relevant gas supplier companies.
Noting that the world market prices are fluctuating factors which cannot be controlled by countries, a senior official of the CAA predicted that this upward trend in cost would continue till early next year.
“The regulation of the gas industry is under the purview of the CAA. The CAA signed an agreement on the prices in 2007 with then Shell and continued with Litro after the takeover. The same year, a pricing formula was introduced. Since then, there have been many price changes up to now," the official said.
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