LPG's Aramco price drops to $842.50 per ton

KARACHI: The international price of liquefied petroleum gas (LPG) has declined by $ 27.50 to $ 842.50 per ton for September 2011, and local producers should reduce local LPG price by Rs2500 per ton immediately.

This was stated by the acting chairman of All Pakistan LPG Distributors Association (APLDA) Mohammad Atique Khan here Tuesday.

He said Saudi Armco Contract Price (CP) the price of propane has slipped by $45 to $790 per ton while butane is down by $20 to $865 per ton.

Atique urged local producers to announce a cut so that LPG can become affordable for domestic consumers. High LPG prices have gone out of reach of poor consumers and therefore, its sale has declined by 45 to 55 percent in the last so many months, he added.

He maintained that most of distributors have closed their businesses due to high LPG prices.

Atique maintained that it was the right of domestic consumers to get a reduction in local prices as LPG's international price has declined.

He alleged that due to high prices of LPG, most of public transport including coaches, auto rickshaws, pick up vans, taxis and mini-trucks has been converted to CNG.

Similarly, in remote and hilly areas, people are now preferring to cut trees to meet their fuel requirements, due to high prices of LPG.

Atique urged the government to devise a mechanism for calculating LPG prices which are acceptable to every stakeholder so that LPG prices can be brought at minimum possible level in the country. This will boost the use of LPG as alternative fuel, he noted.

He also underlined the need to increase local production of LPG in the country to bring down its prices.

Copyright APP (Associated Press of Pakistan), 2011