State-run producers keep LPG prices unchanged

Speculation about hefty increase in prices comes to an end.

Our Correspondent December 02, 2013

The demand for LPG typically soars with the onset of winter as many households and industrial units, which do not receive natural gas from the pipeline network, turn to LPG. PHOTO: FILE

ISLAMABAD: Pak Arab Refinery Company (Parco), a state-owned producer of liquefied petroleum gas (LPG) and other refined petroleum products, has kept the LPG price unchanged at Rs103,525 per ton, including taxes, for the month of December.

Another state-run LPG producer, Oil and Gas Development Company (OGDC), which also produces crude oil and gas, has also left its base stock price unchanged at Rs103,500 for the current month.

These announcements have put an end to speculation that state producers are going to increase the LPG price by Rs46,000 to Rs150,000 per ton in line with the rise in Saudi Aramco’s contract price.

Pakistani LPG producers set their prices in line with the Saudi Aramco’s contract price, which rose to $1,175 per ton on December 1. However, this is the third month that Parco and OGDC have left the prices untouched at $840 per ton.

“The maintaining of LPG base stock price for December will help ensure that the product remains within the reach of end users,” said Belal Jabbar, spokesman for the LPG Association of Pakistan – a grouping of Ogra-licensed LPG marketing companies.

The demand for LPG typically soars with the onset of winter as many households and industrial units, which do not receive natural gas from the pipeline network, turn to LPG.

“LPG companies have adequate stocks with them for the winter season and will continue to build their inventory to ensure that the gas is available at affordable prices,” said Jabbar.

Following the announcement from Parco and OGDC, retail prices of LPG are expected to remain stable at Rs130 per kg in Sindh and Balochistan, Rs140 per kg in Punjab and Rs150 per kg in AJK and northern areas.

LPG companies will maintain the prices notified last month without any change. “We urge the Oil and Gas Regulatory Authority (Ogra) to monitor prices being charged by LPG distributors and take action against those who are found overcharging the consumers,” said Jabbar.

Published in The Express Tribune, December 3^rd, 2013.

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