LPG prices rise by Rs5 on supply disruption
Prices of LPG increased by Rs5 per kilogramme in Punjab and Khyber-Pakhtunkhwa on Tuesday.
KARACHI:
Liquefied petroleum gas (LPG) prices increased by five rupees per kilogramme in Punjab and Khyber-Pakhtunkhwa on Tuesday.
Supplies to the northern half of the country have been affected in recent days, which has pushed the prices up, Chairman of All Pakistan LPG Dealers Association, Hadi Khan, told The Express Tribune. However, prices in Karachi and other parts of Sindh were stable at Rs78 per kg.
After the increase, LPG price has reached Rs89 per kg in Punjab, Rs95 in Peshawar and in far flung areas of Khyber-Pakhtunkhwa rates have surged to Rs100 per kg.
Dealers said that supplies from refineries including Bosicor and Pak Arab Refinery Ltd (Parco) have been disrupted on account of closure for annual maintenance. They said that flooding in different areas has also disrupted supplies to parts of the country.
“Recent increases in the price of diesel are translating into higher freight costs for LPG deliveries from Karachi to other parts of the country,” added Hadi Khan.
But experts say that the hike in prices has been caused primarily by restrictions on supply while demand is stable. Therefore, prices should start to subside once those refineries that are temporarily out of production are brought back online. They say that supplies to Karachi and other southern areas are normal and hence prices in these areas have not been affected.
Meanwhile, LPG stations in Karachi remained closed on Tuesday along with other businesses in the aftermath of the murder of Muttahida Qaumi Movement MPA Raza Haider. Dealers say that they are expecting a temporary spike in demand when businesses re-open over the next two days; however they added that prices will not be affected in the city.
Published in The Express Tribune, August 4th, 2010.
Liquefied petroleum gas (LPG) prices increased by five rupees per kilogramme in Punjab and Khyber-Pakhtunkhwa on Tuesday.
Supplies to the northern half of the country have been affected in recent days, which has pushed the prices up, Chairman of All Pakistan LPG Dealers Association, Hadi Khan, told The Express Tribune. However, prices in Karachi and other parts of Sindh were stable at Rs78 per kg.
After the increase, LPG price has reached Rs89 per kg in Punjab, Rs95 in Peshawar and in far flung areas of Khyber-Pakhtunkhwa rates have surged to Rs100 per kg.
Dealers said that supplies from refineries including Bosicor and Pak Arab Refinery Ltd (Parco) have been disrupted on account of closure for annual maintenance. They said that flooding in different areas has also disrupted supplies to parts of the country.
“Recent increases in the price of diesel are translating into higher freight costs for LPG deliveries from Karachi to other parts of the country,” added Hadi Khan.
But experts say that the hike in prices has been caused primarily by restrictions on supply while demand is stable. Therefore, prices should start to subside once those refineries that are temporarily out of production are brought back online. They say that supplies to Karachi and other southern areas are normal and hence prices in these areas have not been affected.
Meanwhile, LPG stations in Karachi remained closed on Tuesday along with other businesses in the aftermath of the murder of Muttahida Qaumi Movement MPA Raza Haider. Dealers say that they are expecting a temporary spike in demand when businesses re-open over the next two days; however they added that prices will not be affected in the city.
Published in The Express Tribune, August 4th, 2010.