The international price of liquefied petroleum gas has jumped by USD 139 to a record high of USD 1,031 per tonne for February raising its import price by PKR 15,000 per tonne to PKR 108,930 per tonne.

Mr Abdul Hadi Khan FPCCI Standing Committee on LPG and All Pakistan LPG Distributors Association said that Saudi Armco Contract Price has surged to a record high due to surge in prices of butane by USD 160 per tonne while propane is up by USD 130 per tonne.

Mr Hadi said that the domestic price of LPG will be increased by PKR 15 per kilogram, 11.8 kilogram cylinder by PKR 170 and 45.4 kilogram cylinder by PKR 681 if the local producers also enhanced their price in accordance with its international price.

He warned that the local producers to refrain from increasing local prices of LPG as its prices were already high in the country, suppressing its sales to 70%. This will further reduce LPG sales by 30% to 40%. Commercial auto sector is abandoning LPG and switching fast to other fuels due to high LPG prices.

He urged that the petroleum minister to stop local producers from raising LPG prices and introduce the mechanism for imposing heavy fines if they violate the orders. Long associated stakeholders are concerned over the rising LPG prices and as only 35 out of 85 marketing companies are active in the market.

He added that only 15,000 tonnes of LPG has been imported in the current month. A healthy balance has been created due to imports in the country, but the stakeholders also wish that not only sales should be improved but LPG must come in the range of common consumers.

(Sourced from www.thenews.com.pk)