Parco increases LPG price, others to follow suit
The increase adjusts petroleum levy and global price hike.
ISLAMABAD:
State-owned Pak Arab Refinery Company (Parco) has increased price of liquefied petroleum gas (LPG) by Rs15,846 per ton.
The new price, including petroleum levy of Rs11,486, will be Rs109,702 per ton compared to Rs93,856 earlier.
The price rose following a sharp increase in Saudi Aramco contract price that soared to a record high of $1,028 per ton, up $142 compared to the price in January. The domestic market is linked with the Saudi contract price.
Other public sector companies including Oil and Gas Development Company (OGDC) and Pakistan Petroleum Limited (PPL) are expected to follow suit and announce a similar increase in LPG prices.
“LPG rates have also been impacted by the petroleum levy, which has pushed local prices far above international levels. Pakistan is the only country in the world where a tax has been imposed on domestic production to facilitate imports,” said Belal Jabbar, spokesman for the LPG Association of Pakistan.
The resultant rise in producer prices will translate into an increase of Rs187 in domestic cylinder (11.8kg) prices and Rs720 in commercial cylinder (45.4kg) prices.
Retail prices are expected to reach Rs155 per kg while domestic and commercial cylinders will cost Rs1,837 and Rs7,076 respectively.
The levy, which came into effect in January and was designed to push up prices of locally produced LPG and bring them on a par with those of imports.
Published in The Express Tribune, February 4th, 2012.
State-owned Pak Arab Refinery Company (Parco) has increased price of liquefied petroleum gas (LPG) by Rs15,846 per ton.
The new price, including petroleum levy of Rs11,486, will be Rs109,702 per ton compared to Rs93,856 earlier.
The price rose following a sharp increase in Saudi Aramco contract price that soared to a record high of $1,028 per ton, up $142 compared to the price in January. The domestic market is linked with the Saudi contract price.
Other public sector companies including Oil and Gas Development Company (OGDC) and Pakistan Petroleum Limited (PPL) are expected to follow suit and announce a similar increase in LPG prices.
“LPG rates have also been impacted by the petroleum levy, which has pushed local prices far above international levels. Pakistan is the only country in the world where a tax has been imposed on domestic production to facilitate imports,” said Belal Jabbar, spokesman for the LPG Association of Pakistan.
The resultant rise in producer prices will translate into an increase of Rs187 in domestic cylinder (11.8kg) prices and Rs720 in commercial cylinder (45.4kg) prices.
Retail prices are expected to reach Rs155 per kg while domestic and commercial cylinders will cost Rs1,837 and Rs7,076 respectively.
The levy, which came into effect in January and was designed to push up prices of locally produced LPG and bring them on a par with those of imports.
Published in The Express Tribune, February 4th, 2012.