The Oil and Gas Development Company Limited (OGDCL) has reduced its base stock price of LPG by Rs7,000 per ton due to depressed sales.
LPG companies have reduced prices five times in the current month, and have been operating at negative margins. There has been severe curtailment in LPG procurement by marketing companies, and producers were left with no choice but to reduce prices once again.
“LPG marketing companies are not in a position to reduce prices any further. However, this latest reduction in producers’ price will allow them to continue to expand and make investments in the market,” said Belal Jabbar, the spokesperson for the LPG Association of Pakistan. Retail rates are expected to remain stable till the end of the month, when the new Saudi Aramco Contract price will be announced.
Belal said that LPG prices in different parts of the country would be as follows: Punjab Rs115 per kilo, Sindh and Balochistan Rs110 per kilo, AJK Rs120 per kilo and Northern Areas Rs125 per kilo. “LPG prices have declined by more than 30% since March, and are currently at their lowest level since October of last year” said Belal.
Published in The Express Tribune, April 26th, 2012.
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