LPG price hiked to Rs240 per kg, rate in far-flung areas reaches Rs370

LPG price hiked to Rs240 per kg, rate in far-flung areas reaches Rs370

Business

Once considered a cheap fuel is no more affordable for many

ISLAMABAD (Dunya News) – The government has increased the liquefied petroleum gas (LPG) price by Rs10, meaning that the new rate now stands at Rs240 per kg, as the inflation-hit masses are already finding it hard to adjust their monthly budget amid shrinking purchasing power.

So the smaller cylinder used by domestic consumers will cost Rs2,830 while the large one designed for commercial purposes is priced at Rs10,900.

The move comes as the Oil and Gas Regulatory Authority (Ogra) a day earlier hiked the tariff for the Sui Northern Gas by 50 per cent and the Sui Southern Gas by 42pc on average.

Read more: Ogra approves 50pc increase in tariff for Sui Northern, 42pc for Sui Southern

It means a Sui Northern gas consumer is going to pay an additional amount of Rs415.55 per MMBtu (Metric Million British Thermal Unit) while the increase in the case of Sui Southern stands at Rs417 MMBtu.

However, government’s inability to ensure price control means everyone is free to charge your whatever he wants to. As a result, the actual price LPG in the remote mountainous regions of the country has reached Rs370 per kg because of black marketing.

One should remember that the LPG has a popular fuel for the people living far away from main gas distribution system since 1980s, when the fuel was introduced in the country on a large scale.

It also helps saving the forests as the households shifted from woods consumption either completely or at least partially. But making the LPG expensive means it is no more considered a cheap fuel like in the past, forcing many to reduce its consumption.

Read more: Pakistan: What lies ahead in post-IMF deal period?

On the other hand, the smaller restaurants or roadside eateries – like the larger ones catering to the needs high-end customers – too are dependent upon LPG thanks of reduced supply of gas by Sui Northern and Sui Southern because of reduced supply and increase in demand.

Hence, the hundreds of thousands of labourers or working class members living in urban centres also badly affected by the overall price hike, including the LPG.

At the same time, the NEPRA (National Electric Power Regulatory Authority) issued its reserved verdict on the federal government's request for an increase in electricity prices, in which it endorsed the move and fixed new tariffs for different categories of consumers.

Read more: Nepra fixes new tariffs after base price increase for power consumers

According to Nepra's decision, the new price for domestic consumers consuming up to 100 units of electricity per month will surge by Rs3 and by Rs4 falling in the 101 to 200 slab. Hence, the new tariffs after the latest hike for the two categories now stand at Rs16.48 and Rs22.95 per unit respectively.


 




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