LPG prices drop as demand falls

Express May 03, 2010

KARACHI: Marketing companies have slashed prices of liquefied petroleum gas (LPG) by Rs8 to Rs59-60 per kilogramme in Karachi and Lahore as sales dropped by 40 per cent.

All Pakistan LPG Distributors Association Chairman Abdul Hadi Khan announced this on Monday. He said that prices of an 11.8kg cylinder have been reduced by Rs25-30 to Rs650-655 while those of 45.4kg cylinder are down by Rs83 to Rs2,517. He pointed out that stiff competition between the marketing companies coupled with falling sales volumes has caused the drop in prices.

Hadi said that retail prices of LPG in Peshawar have been reduced to Rs65 per kg while in Swat and Northern Areas it is being sold for Rs70 to Rs71 per kg. He said that 11.8kg cylinder is being sold for Rs660 while 45.4kg cylinder is available at Rs2,577 in Peshawar. In Swat and Northern Areas, the 11.8kg cylinder is selling for Rs700 and 45.4kg cylinder for Rs2,693. He said that despite a rise in petroleum product prices, the consumption of LPG has not picked up due to high prices.

He was of the opinion that locallyproduced LPG should be sold for Rs35,000 a ton or Rs35 a kg. Hadi noted that though Saudi Aramco price has increased to $718 per ton, local prices of LPG have declined due to presence of unsold stocks. He said that 20 per cent of distributors have closed down their businesses, posing a threat to the entire LPG sector.

COMMENTS (1)

alok | 13 years ago | Reply Why we are using imported LPG and kerosene in SAARC countries. We are poor in comparison to rest of the world. Solar energy according to my calculations costs 17 times less than LPG and 12 times less than kerosene if used for cooking during 3000 sunny hours a year. By using solar energy for cooking the SAARC can be richest the world. Solar thermal energy can also be used for water heating, processing of all kinds of food by dehydration, purification and distillation of water, direct heating and lighting the living space by properly placed double glass windows etc. So I will appeal all SAARC head of states to issue interest free counter guaranteed loans repayable in 10 years for instruments used in above mentioned activities to utilize free infinite and green solar thermal and light energy directly and not by solar photovoltaic route.

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