LPG Association of Pakistan has congratulated OGDCL on commencing production of 120 MT of LPG per day from its Kunnar Pasaki Field. “This is the first significant production of LPG in the country in the past seven years and represents a major achievement for OGDCL” said Belal Jabbar, the spokesman for the LPG Association of Pakistan. The additional LPG will add 12 per cent to the existing local production and will once again boost local production which has been on the decline. The new production is also likely to replace costly imports and provide a relief to the national exchequer. LPG prices hit a record high earlier this month due to the imposition of Petroleum Levy and an all time high Saudi Aramco Contract price with which local prices are indexed.
Petroleum Levy was enforced to equate the price of local production with imports in a bid to improve supplies of the latter. “Faced with a lackluster demand due to unfathomably high prices, marketing companies have begun to scale down their sale rates. Demand pattern is also shifting due to change in weather and resumption of gas supplies to industries and households” said Belal.
