Liquefied petroleum gas (LPG) prices are expected to increase by Rs14.5 per kilogramme following an increase in the Saudi Aramco Contract Price (Saudi CP) for the month of October, a spokesman of the LPG industry said on Sunday.
LPG prices may hike by as much as Rs14,500 per tonne following the increase in global benchmark Saudi CP for the month of October announced at $989 per tonne against $946 a tonne in September, registering an increase of $43 per tonne.
However, local LPG producers had maintained the LPG rates at $857 per tonne in September, below the international rate of $946, to sell their products amid shrinking demand.
“LPG producers were forced to reduce their prices last month following a drastic reduction in demand for the product,” said Belal Jabbar, the spokesman for the LPG Association of Pakistan. “Even now demand remains muted as producers, companies and distributors are struggling to offload stocks,” he added.
In the event local LPG producers match the new Saudi CP, prices are expected to increase by Rs14,500 per tonne or Rs14.5 per kilogramme. Retail prices could climb as high as Rs130 in Sindh, Rs140 in Punjab, Rs145 in AJK and Rs150 in northern areas.
Published in The Express Tribune, October 1st, 2012.
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