LPG's Aramco price surges to $ 890 per ton
KARACHI, Mar. 31 (APP)- The international price of liquefied
petroleum gas (LPG) has jumped by $ 37 to $ 890 per ton for April 2011
due to crisis in the Middle East, raising its import price by Rs 3,750
to Rs 89,000 per ton in the country.
This was stated by the chairman of FPCCI Standing Committee on
LPG and All Pakistan LPG Distributors Association (APLDA) Abdul Hadi
Khan here Thursday.
He said Saudi Armco Contract Price (CP) has surged to $ 890 per
ton for April 2011 due to disturbed political situation in the Middle
East. The price of propane has jumped by $ 55 to 875 per ton while
butane is up by $ 30 to $ 885 per ton.
Hadi feared that domestic price of LPG will be increased by Rs
3.75 per kilo, 11.8 kilo cylinder by Rs 11.25 and 45.4 kg cylinder by
Rs 170.25 if the local producers also enhanced their price in
accordance with its international price.
He, urged the local producers not to raise domestic prices and
maintain LPG prices at the level of March 2011 in the national
interest and for the cause of country's LPG industry.
The sale of LPG has already decreased by 40 percent due to high
prices and may further decline by 20 percent if local producers
adjusted their prices according to Saudi Aramco CP of April 2011, he
added.
Hadi noted that LPG users have grown to more than 50 million in
the country due to higher prices of petroleum products and it is now
consumed by automobiles, commercial and domestic consumers.
He pointed out that local consumption of LPG has reduced to 1,300
per ton per day, as its demand has drastically declined due to high
prices.
The local producers have also accumulated huge stock of unsold
LPG because of depressed market, he added.
Hadi has appealed to the local producers to announce a reduction,
instead of increasing prices of locally produced LPG.
APP/kas
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