ISLAMABAD: Retail prices of liquefied petroleum gas (LPG) are expected to be increased by Rs19 per kilogramme (kg) following the increase in the Saudi Aramco contract price for August which surged by $173 per ton, said Belal Jabbar, the spokesperson for the LPG Association of Pakistan.
The new Saudi Aramco contract price announced on July 31, 2012 stood at $775 per ton for both propane and butane. “The sharp appreciation is due to increase in the international prices of oil and demand for LPG from China and other energy hungry countries,” Jabbar said.
LPG producer prices which are indexed to the Saudi Aramco contract prices will therefore increase by Rs19,000 from Rs66,010 to Rs85,010 per ton.
“The impact of the inflation will result in an increase of Rs223 for domestic cylinder and Rs860 for commercial cylinder,” Jabbar said adding that the LPG retail prices are expected to be as follows; Sindh and Balochistan Rs115 per kg, Punjab Rs125 per kg, Khyber-Pakhtunkhwa and Azad and Jammu Kashmir Rs130 per kg and Northern Areas Rs140 per kg.
The Government of Pakistan accounts for 70% of the country’s LPG production and will be the most direct and immediate beneficiary of this price hike.
Published in The Express Tribune, August 1st, 2012.