Soon after the surge in oil prices, the price of liquefied petroleum gas (LPG) has also jumped by at least Rs 10 per kilogram as the international price of LPG has swelled by $96 to a record high of $980 per tonne.
However, talking to Pakistan Today, Chairman of FPCCI Standing Committee on LPG and All Pakistan LPG Distributors Association (APLDA) Abdul Hadi Khan said that LPG price increased by Rs 8.5 per kg in the country due to the surge in the import price of gas by Rs 9,043 to Rs 97,560 per tonne following a jump in international market.
He stated that Armco Contract Price (CP) engorged to $980 per tonne due to the Middle East unrest. The price of propane and butane (LPG by-products) increased by $70 per tonne and $105 per tonne respectively.
The price of 11.8kg cylinder is expected to increase by Rs 105, while a rise of Rs 412 is anticipated for the 45.4kg cylinder. However, it is left for local producers to decide about the rise in price.
The LPG Distributors Association urged local producers not to raise domestic prices in accordance with the international price and keep them stalled at the level of April 2011. The association further said that the increase would drastically reduce gas consumption, as almost 40 percent of the consumers have already stopped the use of liquefied petroleum gas. The association has also demanded the government to use its influence on the LPG marketing companies for not announcing the increase in prices.
After the conversion of fuel from diesel, petrol and LPG a large number of rickshaws, buses, and other vehicles to CNG, the LPG consumption has significantly reduced in the country.
The APLDA chairman said that the sale of liquefied petroleum gas has already dwindled by 40 percent and it may further decline by 20 percent, if local producers adjusted their prices according to Saudi Aramco CP of May 2011. He said that local consumption of LPG has reduced to 1,300 per tonne daily.
