ISLAMABAD: The marketing companies reduced prices of Liquefied Petroleum Gas (LPG) by Rs15 per kg on Wednesday following a declining trend in world markets.
Prices of domestic cylinder were decreased by Rs175 and commercial cylinder by Rs700.
LPG Distributors Association Chairman Mohammad Irfan Khokhar said that the local market witnessed a dip in LPG prices after a reduction of $70 per tonne to $300 per tonne in the international market.
He said the new prices would be effective from Feb 3 throughout the country.
Giving details, he said the prices had been reduced to Rs85 per kg and domestic cylinder will be available at Rs970 in Lahore, Kasur, Gujranwala, Gujrat, Faisalabad, Jhelum, Sahiwal, Sialkot and Peshawar.
Prices of domestic cylinder in Rahim Yar Khan, Sadiqabad, Hyderabad, Attock, Mirpur and AJK have been slashed to Rs1,150, and its one kilogram price would be Rs100.
In Rawalpindi, Islamabad, Abbotabad, Muzaffarabad, Fata, Kotli, Mirpur Khas, Umarkot and Nawabashah, the one kilogram LPG would be sold at Rs110 and the domestic cylinder will be available at Rs1300.
The price of domestic cylinder in Gilgit-Baltistan, Murree and Balakot would be Rs1,510 and its one kilogram price would be Rs130.
He said the price of domestic cylinder in Karachi has been reduced to Rs910, and its per kg rate would be Rs80.
He said the representatives of the association recently held a meeting with Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi to discuss issues pertaining to ensuring stability in prices.
Base price rejected
Our Staff Reporter adds from Karachi: LPG Distributor Association of Pakistan (LPGDAP) Vice Chairman Ali Haider has rejected the base price announced by public sector producers and private refineries.
He said it was for the first time in the history of the country that the landed price of imported LPG is around 50,500 tonnes, including the profit margin of importer due to decline in international Saudi Aramco Contract Price by $72 per tonne. The current C&F price is $360 per tonne.
He said that the OGDCL had announced average price of Rs43,000 per tonne followed by Rs44,000 per tonne by Byco and this price, including sales tax, amounts to Rs51,597 per tonne ex-refinery.
OGDCL and Byco reduced LPG price by Rs5,000 per tonne on Wednesday.
After adding the primary transportation and operating cost of LPG marketing company and its distribution margin, another Rs10,000 per tonne are added.
Distributor and retailer margin is not included in this price which means the ex-refinery price of local producer is expensive than the landed imported LPG price, he claimed, adding “this is against the spirit of deregulation policy of LPG.”
He said the local product is being forced to sell at more than international prices and none of these private and public LPG producers import a single tonne of LPG.
They are also charging premiums, signature bonus and profit margin to LPG marketing companies. “If we add this component of cost, the price of LPG would increase at least by Rs13,000-15,000 per tonne than the imported LPG. “
He urged the government to bring the local LPG prices at least to the level of Saudi Armaco Contract Price of the current month.
Courtesy : Dawn News