The increase in Saudi Aramco Contract Price (CP) of liquefied petroleum gas (LPG) may result in 15 percent (Rs 7.2 per kilogram) hike in price in Pakistan effective from September 3. The Saudi Aramco Contract Price, which is the ceiling price for local LPG producers, has increased from 508 dollars per metric tonne in August to 583 dollars per metric tonne for September.
This translates into an ex-producer plant price increase of Rs 7,221 per metric tonne or Rs 85 per 11.8-kilogram cylinder or Rs 7.2 per kilogram. According to spokesman of LPG Association of Pakistan (LPGAP), the increase in Saudi CP may lead local LPG producers to increase price by 75 dollars per metric tonne effective effect from September 3.
"Public and private sector LPG producers in Pakistan are likely to increase prices by up to 15 percent for September following increase based on the hike in the Saudi CP," said an LPGAP spokesman. The spokesman said LPG prices had remained reasonable during Ramazan and well within the limits prescribed by the Oil and Gas Regulatory Authority (Ogra). " The LPGAP requests all LPG producers to keep any price increases to a minimum during the month of Ramazan," said the spokesman.
"We have also requested the LPG marketing companies and LPG distributors to price product within reasonable limits in order to benefit the general public," he said. The spokesman said all stakeholders must to ensure stability in prices, and added that pricing information would continue to be provided by the LPGAP for the information and benefit of the consumer and general public.
The spokesman said record imports had been made in Pakistan during the current calendar year. "With the import of 7,500 metric tonnes expected in the first half of September, sea-borne imports will have reached 57,616 metric tonnes, which is an increase of 140 percent over the previous year," he said.
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