The LPG retail prices will fall sharply once business resumes after the Eid holidays, said LPG Association of Pakistan spokesman Fasih Ahmed. The association is a grouping of all LPG marketing companies operating in the country.
He said the LPG marketing companies would cease operating in the upcoming Eid holidays. "LPG distributors have mopped up all available products and storing it for sale during the five-day holiday week. Retail prices have risen in response to this Eid rush, but will return to around Rs 55/kg after Eid.
While we understand that demand and supply dynamics are partly to blame for the current retail prices, we are seriously concerned about the extraordinary and unjustifiably high margins being charged by LPG distributors and retailers," Fasih said.
There is a run on the product but no reduction in overall production in Pakistan. The retail prices touched Rs 75 per kilogramme in Lahore on Tuesday while the maximum prices prescribed by the LPG Marketing Companies is Rs 57/kg. The retail prices would have been higher, had the government not de-linked the local LPG Producer Prices from Saudi Arabian export prices on November 30, he added.
At the current prevailing retail prices, LPG imports, based on the Saudi ARAMCO December CP of $875/tonne, are very feasible, and at least two major stakeholders in the LPG industry are importing product in January.
Comments
Comments are closed.