KARACHI – The All-Pakistan Liquefied Petroleum Gas (LPG) Distributors Association (APLDA) requested local producers not to increase the price of LPG to avoid further reduction in LPG sale, despite an expected increase of Rs 3.75 per kilogramme (kg) because of a price hike in the international market. Talking to Pakistan Today on Thursday, APLDA Chairman Abdul Hadi Khan said the LPG sale in the country had already reduced by 60 percent and an LPG price hike might cause a further decrease of 20 percent. He said high prices had already reduced the local LPG consumption to 1,300 tonnes per day.
He said 50 million LPG-users were facing severe problems as the local producers had accumulated large stocks of unsold LPG because of the depressed market. He appealed to the local producers to announce a reduction, instead of an increase in the price of locally produced LPG.
Khan said the international price of LPG had increased by $37 to $890 per tonne for April because of the Middle East crisis, raising its import price by Rs 3,750 to Rs 89,000 per tonne in the country. He said the Saudi Armco Contract Price (CP) had surged to $890 per tonne for April 2011 due to disturbed political situation in the Middle East specially Libya. The price of propane had increased by $55 to $875 per tonne while butane was up by $30 to $885 per tonne.
He feared that domestic price of LPG would be increased by Rs 3.75 per kg if the local producers also increased its price in accordance with the international market.
On the other hand, LPG Distribution Association President Irfan Khokhar, in a media report defended the latest price hike in LPG, saying it was the result of a price hike in the international market. With the current raise, LPG price in Karachi and Lahore had gone up to Rs 100 from Rs 95 per kg, Rs 115 from Rs 110 per kg in Peshawar, Islamabad, Rawalpindi, Rahimyar Khan, Bahawalpur, Kohat and Marri and to Rs 120 from Rs 115 per kg in Muzaffarabad.
