The Nation reported that marketing companies of liquefied petroleum gas have raised prices by PKR 9 per kilogram following an increase made by the producers.

After the increase, retail prices in Karachi, Lahore and Peshawar will be PKR 76 per kilogram to PKR 77 per kilogram, PKR 79 per kilogram to PKR 80 per kilogram and PKR 81 per kilogram PKR 82 per kilogram respectively.

The producers have raised prices after an increase in the Saudi Aramco contract price to USD 660 in November from USD 581 in October.

Mr Abdul Hadi Khan Chairman of the All Pakistan LPG Distributors Association said that 50 million consumers would be affected by the price hike during winter when LPG demand went up sharply. He said that over 7,000 LPG distributors were already facing problems because of persistent fall in their sales. Despite de linking of the LPG price from the international market, local producers raised the price by PKR 21,974 per tonne for the January to October period 2009.

The Saudi Aramco contract price surged by USD 209 per tonne during the period and Pakistan imported 61,358 tonnes of LPG.

Mr Hadi alleged that producers were producing 1,450 tonnes to 1,500 tonnes of LPG against a demand for 1,700 tonnes per day to create an artificial shortage. The demand would rise to 2,100 tonnes to 2,200 tonnes per day during the peak winter season.

He said that producer’s failure to meet the rising demand will lead to a further increase in prices. He urged the government to remove 16% sales tax on import of LPG in order to offset the impact of rising Saudi Aramco contract price.

(Sourced from the Nation.com)