LPG price likely to go up by Rs42 per kilo

The likely hike translates into an increase of Rs504 for a domestic and Rs1,940 for a commercial cylinder that would now be priced at Rs2,097 and Rs8,069 respectively. PHOTO: CREATIVE COMMONS

ISLAMABAD: Following a hike in global gas prices, the price of Liquefied Petroleum Gas (LPG) is likely to go up by Rs42 per kilogramme, said a spokesman for the LPG Association of Pakistan yesterday.

Saudi Aramco, an oil company that produces, manufactures, markets and ships crude oil, natural gas and petroleum products to meet global demand, had announced on Thursday the Contract Price (CP) for LPG at $1,175 per ton for the month of December. The increase of $275, from the rate in November, is a testimony to the rising LPG demand as several countries head into the winter season.

However, the price impact in Pakistan may be as high as $335 per ton, as local LPG producers maintained the Saudi Aramco CP of October, which was $840, even in November.

“In the event of local LPG producers matching the December CP, prices could rise by as much as Rs42,725 per ton [Rs42 per kilogramme inclusive of taxes),” said Belal Jabbar, the LPG Association of Pakistan spokesman.

The likely hike translates into an increase of Rs504 for a domestic and Rs1,940 for a commercial cylinder that would now be priced at Rs2,097 and Rs8,069 respectively.

Similarly, retail rates in different parts of the country would be as follows — Sindh and Balochistan Rs168 per kilogramme, Punjab Rs178 per kilogramme, Azad Jammu and Kashmir and Gilgit Baltistan Rs188 per kilogramme.

“We urge the government and LPG producers to maintain their current prices to provide some relief to the consumers as only 30% of LPG is imported. The remaining is produced locally,” added Belal.