LPG prices increased by Rs 9 per Kg

LPG producers and marketing companies have increased price of liquefied petroleum gas (LPG) by a record Rs 9 to Rs 70 per kilogram with the increase in Saudi Aramco Contact Price (CP). According to Chairman of All Pakistan LPG Distributors Association, Hadi Khan, the price of 11.8 kg cylinder has been increased by Rs 105 to Rs 725 and 45.4 kg cylinder is up by Rs 418 to Rs 2789 with immediate effect as producers have increase per ton price by Rs 9,890. It may be noted that Saudi Aramco CP for LPG has been increased by $ 91 to 528 per metric ton, following the rise in crude price. Hadi pointed out that this is the highest increase in just one go in the history of Pakistan. He alleged that the producers and marketing companies have challenged the writ of the government as Saudi Aramco Contract Price is not applicable in Pakistan and LPG prices are no more linked with it. He said that the cost of locally produced LPG is about Rs 10,000 per metric ton. He said that local production has been declined from 1600 metric ton in November, 2008 to nearly 1100 MT in 2009. However, he said that a sufficient import of 41,740 MT of LPG has created a surplus stock in the country. Hadi Khan said that he had urged the government to ensure that LPG producers and marketing companies may not increase local prices by linking it with Saudi Aramco CP. He was of the opinion that it will be detrimental to LPG business specially the distributors and its consumers.