LPG prices likely to go up

Increase to come in wake of higher Saudi Aramco contract price.


Our Correspondent February 27, 2014
Although local prices have been below Saudi Aramco CP for the last four months, prices may increase this month as the company’s CP has declined by $106 per ton. PHOTO: FILE

ISLAMABAD: The price of Liquified Petroleum Gas (LPG) is likely to go up by Rs18 per kilogramme (kg) following a plan by producers to match the international price.

Local LPG producer prices currently stand at Rs75,000 per ton (exclusive of taxes), which may increase following the announcement of the new Saudi Aramco CP for the month of March.

“The local LPG producer price is currently Rs15,000 per MT below the March Saudi Aramco CP. However, we fear that producers may now increase their prices to match the CP,” said Belal Jabbar, the spokesman for the LPG Association of Pakistan.

The Ministry of Petroleum is keen to reduce LPG producer prices and has been instrumental in keeping them below Saudi Aramco CP.

In the event the producer price is increased by Rs15,000 per ton, the net impact including tax will increase the retail price by Rs18 per kg to Rs130 per kg in Sindh and Balochistan, Rs140 per kilo in Punjab, Rs150 per kilo in AJK and GB areas.

Similarly, prices of the domestic and commercial cylinder may increase from Rs1,416 to Rs1,628 and from Rs5,448 to Rs6,263 respectively.

“The country’s LPG production is on track to increase by some 300 tons per day next month and additional supplies of 500 tons per day are expected by the end of the year,” said Jabbar. “These supplies will add some 50% to existing local production, thereby making the country self-sufficient in LPG. In these circumstances there is no justification to link local producer prices with higher import prices.”

Published in The Express Tribune, February 28th, 2014.

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COMMENTS (1)

Chaudhry | 10 years ago | Reply Autogas anyone? I am sick and tired of standing in CNG lines.
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