Jamshoro Joint Venture Limited (JJVL), Pakistan's largest LPG producer, has announced a 15 percent reduction in its LPG price from November 3, 2008, and will be effective for the whole month. The reduction is expected to have a gradual downward impact on retail prices across the country, said Fasih Ahmad, Director of the company, at a press conference in Lahore Press Club here on Friday.
"In view of the difficulties being faced by the consumer on account of inflation, and in view of falling commodity prices in the international markets, JJVL has decided to offer a 15 percent reduction in its LPG price," he said. "We caution the consumers that the gradual impact of this substantial reduction in the price, at which the product is provided to LPG marketing companies, should be apparent over the next week," he said. "We expect other LPG producers to follow our lead to help ensure the availability of affordable product across Pakistan."
JJVL's ex-plant price, at which LPG marketing companies procure the product, will be Rs 46,512.52/ton (inclusive of taxes) during November, as opposed to the October price of Rs 54,485.00/ton (inclusive of taxes). This translates into a price of Rs 547.21/11.8 kg cylinder, or Rs 46.37/kg during November as opposed to Rs 641/11.8 kg cylinder or Rs 54.32/ kg in October.
The price revision will come into effect on Monday, November 3, 2008. "While end-consumer LPG prices will be determined by market forces, we expect this reduction will gradually push down retail prices below Rs 70 per kg," said Ahmed. The current national average retail rate is Rs 72 per kg.
"JJVL has imported 5,000 metric tons LPG this year and may import additional cargoes to ensure price stability during winter," he added. He also announced that JJVL is donating Rs 1 million and product for the relief efforts following the Balochistan earthquake. He stated that it would devise a mechanism for provision of free product to Quetta and Ziarat people in collaboration of agencies working in these areas.
JJVL meets the energy requirements of about 500,000 households throughout Pakistan and represents an investment of $100 million in Pakistan's LPG sector. JJVL is a finalist for the Rising Star Award at the 2008 Platts Global Energy Awards being held in New York this December.
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