State-owned liquefied petroleum gas (LPG) producers Oil and Gas Development Company (OGDC) and Pakistan Petroleum Limited (PPL) have increased gas prices by a whopping Rs20,000 per ton, which took the prices to record highs.
In notifications issued on Monday, the companies put the new price of LPG at Rs113,000 per ton, including petroleum levy of Rs11,486.
Earlier on Friday, state-owned Pak Arab Refinery Company (Parco) increased LPG price by Rs15,846 per ton. The new price, including the petroleum levy, stood at Rs109,702 per ton.
The prices rose following a sharp increase in Saudi Aramco contract price that soared to a record high of $1,028 per ton.
Last month, the petroleum minister announced that the petroleum levy would be absorbed by the gas producers and would not be passed on to the consumers. Under pressure from the ministry, the state-owned producers reduced LPG prices by Rs10,000 per ton before adding the levy of Rs11,486.
Following the price increase by OGDC and PPL, the cost of domestic (11.8kg) and commercial cylinders (45.4kg) will rise from Rs1,650 to Rs1,885 and Rs6,356 to Rs7,265 respectively. Retail prices are expected to top Rs160 per kg.
Published in The Express Tribune, February 7th, 2012.