LPG prices fall by Rs15 per kg

Domestic markets follow international price reduction.

KARACHI: Liquefied petroleum gas (LPG) prices have gone down by Rs15 per kilogramme in the domestic market, following a decline in international prices of the fuel.

All Pakistan LPG Dealers Association Chairman Abdul Hadi Khan said that LPG rates have been slashed by Rs11,300 per ton to Rs81,800 in view of lower Saudi Aramco contract prices. As a result of this reduction, an 11.5kg domestic-use cylinder will cost about Rs1,140 in Karachi, while in Lahore the rate stands between Rs1,170 and Rs1,180.

Hadi called for rationalisation of prices of domestically produced LPG. “This will keep the rates in the local market stable as compared to international markets and will also ensure a smooth supply of the fuel to the people,” he said.

The Oil and Gas Regulatory Authority (Ogra) has fixed LPG prices for Pak-Arab Refinery at Rs81,765 per ton and Rs81,838 per ton for Oil and Gas Development Company (OGDCL).

LPG Dealers Association of Pakistan Chairman Irfan Khokar said that prices have already been adjusted in all major cities, while in far-flung areas, the rates will taper off in the next few days.

LPG is generally regarded as the fuel of masses and is primarily used in rural areas. In the wake of floods last year, prices had spiralled beyond Rs100 per kg in some areas.

While the government is mulling over increasing prices of petrol, diesel and other fuels, reduction in the price of LPG is being considered as a welcome relief for the people.

Published in The Express Tribune, February 4^th,  2011.