Market data revealed that LPG rates tumbled $111 per ton internationally to settle between $815 and $926 per ton. “The reduction will lead to lower prices in the country, once the Oil and Gas Regulatory Authority (Ogra) revises prices on February 3,” said LPG Dealers Association of Pakistan Chairman Irfan Khokar.
Fuel prices are reviewed by Ogra on the third of each month. Local manufacturers send their proposals for pricing to the regulatory authority prior to the announcement.
Khokar said that “the fall in international prices translates to about Rs11,268 per ton locally.” He explained that per kilogramme prices will likely fall by Rs12 next month.
The reduction in the price of a domestic cylinder is expected to be about Rs133. Each commercial cylinder of LPG will be cheaper by Rs532.
LPG dealers say the reduction will provide relief to the masses as LPG is considered to be “the poor man’s fuel.” They contend that in the face of rising petroleum prices, demand for the cheaper alternative will likely increase in the days ahead.
Prices had rocketed earlier on the back of floods in the country which blocked supply routes to various areas.
At that time, LPG rates soared above Rs100 per kg in parts of northern Punjab as well as Khyber-Pakhtunkhwa. However, local refineries including Bosicor and Parco are expected to suggest lower prices in their submissions to the regulator in coming days.
Published in The Express Tribune, February 1st, 2011.
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