LAHORE – State-owned LPG producers, Oil & Gas Development Company Limited and Pak Arab Refinery, have increased their respective LPG base stock prices by as much as Rs6,600 per ton - Rs6.6 per kg.
The resultant increase in producer prices is expected to push retail rates per kilo up to Rs 130 in Sindh, Rs140 in Punjab and KPK, Rs145 in AJK and Rs150 in Gilgit-Baltistan and Northern Areas. The prices of domestic and commercial cylinders are expected to go up by Rs78 and Rs300 to Rs1650 and Rs6350 respectively.
The increase in response to the new Saudi Aramco Contract Price for November was less than market anticipations. “For the third consecutive month in a row LPG producers have been forced to maintain their prices well below the Saudi Aramco CP as the international price benchmark has flirted with new highs,” said Belal Jabbar of LPG Association of Pakistan. “The Supreme Court’s decision to reduce prices has had an adverse impact on the demand for LPG as an automotive fuel which has depressed its sale,” said Belal.