The Saudi Aramco contract price for LPG is expected to rise by US $40-50 per ton next month which would break all previous records and be the highest ever price of LPG, a spokesman of LPG Association of Pakistan, said. In view of this, the spokesman requested all LPG producers, particularly public sector producers who lead the increase in prices, to rationalise their prices next month.
"An increase in the Saudi Aramco contract price would further escalate price of domestic LPG, leading to higher retail and wholesale prices which will adversely impact the consumer. Keeping in view the severe winter conditions, which have already reduced availability of natural gas in many areas, LPG would become an even more expensive option," he said.
According to him, the prevailing policy of federal government allows LPG producers to charge up to a maximum of Aramco price. However, LPG producers have on many previous occasions priced their product lower than that of Aramco's to ensure that LPG remains competitive with other fuels. About 90 percent of LPG consumed in Pakistan is domestically produced, most of it being a by-product of natural gas processing and crude oil refining. He said, "It is imperative that LPG producers pass on the benefit of local production to the consumers, especially at a time when international prices are spiralling and the nation is suffering from the worst ever natural gas crisis."
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