Pakistan has emerged as the regional leader in liquefied petroleum gas (LPG) prices as liquid fuel price is touching Rs135 to Rs140 per kg in retail markets. The country already has the not-so-revered distinction of sitting at the apex in terms of CNG price among various South Asian countries.
TOP OF THE PILE
A comparison of liquid gas prices in South Asia shows that Pakistan has the highest LPG price of Rs135 to Rs140 per kg, followed by Maldives, Bangladesh, Sri Lanka, Nepal and India. A study conducted by Profit indicates that almost all South Asian states have similar circumstance as they import a major chunk of liquid gas for their domestic needs. But in most countries, government is subsidising liquid fuel to make it affordable.
BIGGEST JUMP
In Pakistan, after the highest ever increase of Rs10.50 per kg liquid gas prices have been swelled to Rs135 per kg that makes it the most expensive fuel in the country. The latest price figures released by LPG Association of Pakistan (LPGAP) indicates that LPG price in the country has touched the Rs92,136 per tonne mark inclusive of all taxes, which representative an increase of Rs 11,274 during the last two days.
OGDCL TO FOLLOW SUIT
LPGAP spokesman points out that state owned LPG producers, Pak Arab Refinery and Pakistan Petroleum Limited, have increased the base stock price of LPG from Rs69,623 to Rs79,340 following the increase in Saudi Aramco Contract Price for January. Other LPG producers, including Oil and Gas Development Company Limited, are expected to match the price, he indicated.
MALDIVES BETTER OFF
However, LPG prices comparison show that in Maldives, LPG – commonly known as cooking gas – is being sold at Rs133 per kilogram, while an 11.80 kg cylinder is available at Rs1,327 in Pak rupee terms.
BANGLADESH GOVT’S PRUDENCE
Similarly, in Bangladesh, where the demand for liquid gas witnessed a steep rise during recent months following the suspension of new gas connections to households and industrial units due to acute shortage of natural gas, LPG is being sold at Rs128 per kg or Rs1,594 per 12.5 kg cylinder. Bangladesh LPG demand and supply figures show that liquid gas consumption increased by 80 per cent during 2011 and touching 90,000 tonnes. The study shows that to keep liquid gas prices affordable, Bangladesh government has waived import duty and taxes on LPG, cylinders and its accessories. Earlier, the Bangladesh government had imposed five per cent import duty on LPG.
SRILANKAN NUMBERS
Price comparison shows that in Sri Lanka, the liquid fuel is being sold at Rs120 per kg, whereas 12.5 kg cooking gas cylinder is available at Rs1,496 in Pak rupee term. Similarly, in Nepal, LPG is being marketed at Rs106 per kg or Rs1,508 per 14.2 kg cylinder.
INDIA TAKES THE CAKE
India is the least expensive country in LPG prices across South Asia as Indian government is heavily subsidising the cooking gas. Figures show that in Pak rupee term, India is selling LPG at Rs48.00 per kg. At present, a 14.2 kg LPG bottle costs Indian Rs399.26 in Delhi and Rs398.45 in Mumbai as the Indian government is offering a subsidy of Indian Rs288 per cylinder. However, now a debate has been instigated in government circles as to why government is subsidising liquid fuel for all sections of society, including rich and poor.
lpg prices are right in pakistan. what is most unfortunate foe we saarcians is that we are using this costtlieist lpg and kerosene and are not using free infinite solar during sunny hours. In this way we send enormous amount of money from poorest south asia to richest oil exporters
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