“The market was anticipating a far greater decline, given the already high contract price for December, but demand from Western Europe and China has remained strong,” said Belal Jabbar, the spokesperson for the LPG Association of Pakistan in a statement issued here.
Under the present pricing regime, whereby local producer prices are indexed to the Saudi Aramco contract price, LPG producers are likely to reduce their price by a nominal Rs1,900 per ton.
“The actual impact of the decline may not be felt in the market, since any decline in the contract price will be offset by depreciation in the Pakistani rupee,” said Jabbar.
However, unlike last month – when local production hit snags due to the closure of Jamshoro Joint Venture’s facility – supplies are expected to improve this month as the company begins supply and more imports make their way into the market.
“The improved supplies will help in rationalising prices and correcting the demand-supply imbalance” said Jabbar.
Published in The Express Tribune, January 1st, 2013.
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