LPG price drops further by Rs10 per kg

This was the second consecutive price reduction in the last two weeks.

KARACHI: Following action against dealers artificially propping up prices, liquefied petroleum gas (LPG) prices further fell by Rs10 per kg on Tuesday.

LPG Dealers Association Chairman Irfan Khokar told The Express Tribune “following this reduction, one kilogramme of LPG will be available for Rs110 in Sindh and Punjab, while in Khyber-Pakhtunkhwa, it will cost around Rs115.” Likewise, the cost of a domestic cylinder of the fuel will be cheaper by about Rs440, he added.

This is the second consecutive reduction in LPG prices in the last two weeks. On February 3, the Oil and Gas Regulatory Authority (Ogra) marked down ex-refinery rates, prompting a fall of Rs15 per kg in the domestic price of LPG.

Market sources confirmed raids were carried out at the behest of Ogra against dealers suspected of profiteering by charging higher prices.

LPG demand has dropped significantly over the past few weeks, despite successive reductions in prices. Khokar explained that LPG is often used for heating purposes and also as an alternate fuel in far flung areas, where warmer temperatures have eased the demand for the fuel.

Saying that there has been a decline of “about 20 per cent” in domestic consumption since early January, Khokar predicted LPG rates will remain subdued in coming weeks.

Published in The Express Tribune, February 16^th, 2011.