LPG price again up by Rs 2 per kg

Marketing companies have once again increased the price of liquefied petroleum gas (LPG) by rupees two per kilogram, raising the price of a domestic cylinder by Rs 25 and commercial by Rs 100. This is the fifth time that the LPG prices was raised in the past 25 days, adding more woes to the common man using this cheap fuel.
Chairman of Zonal Standing Committee on LPG of the Federation of Pakistan Chambers of Commerce and Industry Muhammad Irfan Khokhar, criticising the price increase, said on Monday the marketing companies had practically undone all the government steps to bring stability in the prices.
He said because of the LPG price increase, the rickshaw-taxi owners had enhanced their fares by Rs 30-50 on different routes, adding to the miseries of the travelling public. He said that during summer, the price of LPG usually came down, but this time the marketing companies had increased the price by Rs 10 per kilogram, which was unprecedented.
He said in April, the price of a domestic cylinder was Rs 505 and commercial cylinder Rs 2,020, but now it had reached from with, Rs 46 per kilogram to Rs 56 per kilogram and the domestic cylinder was being sold at Rs 606. Irfan Khokhar urged the government to intervene and take note of this unusual price hike and provide relief to the common man.
According to the LPG Association of Pakistan (LPGAP), a group of LPG marketing companies, LPG consumer prices remain reasonable despite recent adjustments. "Consumer prices have edged up to a national average of about Rs 52 per kilogeam," said LPGAP spokesman Fasih Ahmed.
"At present, LPG producers have fixed the price of Rs 540 per 11.8 kilograms or Rs 45 per kilogram, the rational final end-consumer price is about Rs 706 per 11.8 kilograms or Rs 60 per kilogram," he said, adding that LPG marketing companies had incurred significant losses during March and April.
He said the LPG supply was still somewhat higher than the product''s demand, which began picking up this month. "The market has responded positively to the LPG''s value-for-money in comparison to competing fuels," he added. He said the LPG consumer prices were determined by market demand and supply forces and must preserve the viability of all links in the value chain.