Going steady: LPG prices remain stable

Rates left unchanged for sixth month in a row.

ISLAMABAD: State-owned Liquefied Petroleum Gas (LPG) producers, Oil and Gas Development Company Limited (OGDCL) and Pak Arab Refinery Limited (PARCO), have left their prices for April unchanged at Rs75,000 and Rs75,500 per ton respectively (exclusive of taxes).

This is the sixth month in a row that prices have been kept unchanged and are currently $55 per ton below the Saudi Aramco Contract Price.

“Retail prices are expected to remain stable at Rs110 per kilogramme (kg) in Sindh and Balochistan, Rs120 per kg in Punjab, Rs125 in Azad Jammu and Kashmir and Khyber-Pakhtunkhwa (K-P) and Rs130 in Gilgit-Baltistan and the northern areas,” said Belal Jabbar, spokesman for the LPG Association of Pakistan.

The federal government is keen to reduce LPG prices following the recent increase in production from MOL’s field of Makori which commenced supplies last month.

Current production from Makori stands at 250 tons per day and is expected to surpass the 300 ton per day mark soon. Additional supplies of 200 tons per day are expected from fields in Sindh in the next two months that would increase the country’s production to 1,800 tons per day.

“The country’s improving LPG supplies augur well for the ongoing energy deficit and production would be soon be able to fulfill household as well as industrial and auto demand,” added Belal.

Published in The Express Tribune, April 4^th, 2014.

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