LPG 11.8kg cylinder price reaches Rs 585

LAHORE - The price of the Liquefied Petroleum Gas (LPG) on Monday witnessed an another increase of about Rs 20 per cylinder of 11.8 kg to reach Rs 585 from Rs 565 in the upper areas of the country particularly in the NWFP on the back of reduced production of the LPG and the ever-increasing profitability of the producers.

This was claimed by LPG Distributors Association Pakistan Chairman Abdul Hadi Khan in a press release reached here on Monday. While the LPG Association of Pakistan (LPGAP) in a statement said the current LPG retail prices are well within the maximum consumer prices allowed by the Oil and Gas Regulatory Authority (OGRA) and any changes in LPG retail prices are a result of market demand and supply.

"LPG marketing companies have been operating on negative margins since the beginning of March and even now companies are barely breaking even," said Fasih Ahmed, spokesman for LPGAP, the group of LPG marketing companies. "Even with the recent increases, LPG retail prices are far below the maximum consumer prices assessed by the Government and OGRA," he said.  The current LPG Producer Price or the price at which LPG marketing companies purchase product is Rs 45,878/tonne or Rs 540/11.8kg, whereas the price at which LPG marketing companies sell product to their distributors is currently Rs 540/11.8kg cylinder in Karachi and Rs 560/11.8kg in the Punjab, said Ahmed. "LPG marketing companies are capital-intensive enterprises and are fully conscious of their responsibility to ensure the availability of affordable product throughout Pakistan," he said, adding that LPG is currently still cheaper than both petrol and diesel.