Marketing companies have slashed price of liquefied petroleum gas (LPG) by Rs 3 to 67 to 68 per kilogram in Karachi and Lahore due to piled up unsold stocks, touching 10,000 metric tons. This was stated by the chairman of FPCCI Standing Committee on LPG and All Pakistan LPG Distributors Association Abdul Hadi Khan here on Monday. Price of 11.8 kg cylinder has been cut by Rs 30 to 35 to Rs 675-685 while 45.4 kg cylinder will be down by Rs 115-120 to Rs 2,585 to 2,600.
He said that retail price of LPG in Peshawar has been reduced to Rs 70 to 72 per kg while in Swat and northern areas LPG will be sold at Rs 76 to 77 per kg. Hadi said that 11.8 kg cylinder is sold at Rs 695 to 700 while 45.4 kg cylinder is available at Rs 2,685 to 2,700.
In Swat and northern areas, 11.8 kg cylinder is selling at Rs 730 and 45.4 kg cylinder at Rs 2,750 to 2,800. Hadi pointed out that LPG sale has declined by 35 percent in the last eight months due to high local price. Despite our repeated requests to bring down price of locally produced LPG, producers and the government have failed to lower prices in the country, he added. He said that LPG import has been stopped since last two months due to high international prices.
Hadi urged the government to ask local producers to lower their artificially inflated local prices to enable poor to again use this cheaper alternate fuel. He was of the opinion that locally produced LPG should be sold at Rs 35,000 MT as its production cost is only Rs 9,000 to 12,000 MT. He feared that automotive sector will also give up LPG as fuel due to high prices. This will create a crisis for not only marketing companies and distributors but also for local producers.