The News reported that the international price (Saudi Armco Contract Price) of liquefied petroleum gas has jumped up by USD 13 to USD 805 per tonne for December raising its import price by PKR 1,144 to PKR 98,000 per tonne in the country.
Mr Abdul Hadi Khan chairman of FPCCI Standing Committee on LPG and All Pakistan LPG Distributors Association said that domestic LPG price will be increased by PKR 1.5 to PKR 2 per kilogram, 11.8 kilogram cylinder by PKR 23 and 45.4 kilogram cylinder by PKR 63 if the local producers also enhanced their price in accordance with the Saudi Aramco CP.
Mr Hadi urged the local producers not to raise domestic prices in the national interest and for the cause of the country’s LPG industry and said that LPG sale has restricted to 65 to 70 percent in the country.
He urged the Ministry of Petroleum and Natural Resources to issue a clear cut notification for imposing a proposed levy on the LPG producers so that they cannot transfer this burden to the consumers who are making huge profits due to lesser cost of LPG production in the country.
Mr Hadi said that LPG is the only sector where producers are making income which is higher by manifold than their product cost. If this levy was extended to other segments of the LPG sector it will be out of reach of the common man and result in the creation of a few monopolies. LPG imports have declined by 45% during January to November due to rise in the international price of LPG and imposition of sales tax at import stage.
Only 28,000 tonnes LPG was imported during the 11 months of 2011 against 51,025 tons during the same period in 2010. LPG users have grown to more than 50 million in the country due to higher prices of petroleum products and it is now consumed by automobiles, commercial and domestic consumers.
The local LPG consumption is around 1,500 to 1,600 per ton per day during the current winter while its production is ranging in between 1,100 tonne per day to 1,200 tonnes per day. This had touched 2,200 tonnes per day a few years ago.
(Sourced from www.thenews.com.pk)
