State-owned Liquefied Petroleum Gas producer Pak-Arab Refinery Limited (Parco) has announced reduction in LPG base stock price by Rs 5000 per ton with effect from May 1, 2012. According to a notification issued here on Monday, the new Parco base stock price is Rs 70,000 per ton exclusive of duties and taxes whereas the Saudi Armco Contract Price (CP) is Rs 78,000 per ton.
Local LPG producer prices are now Rs 8000 per ton below the Saudi Aramco Contract Price of May, which also witnessed a decline of $130 per ton to settle at $830 per ton. Belal Jabbar, spokesman for LPG Association of Pakistan said that as a result of Parco decision, the commodity prices would be reduced by Rs 5 per kg, Rs 60 per domestic cylinder and Rs 234 per commercial cylinder. Retail prices in different parts of the country are expected to decrease as follows: Punjab from Rs 115 per kg to Rs 105 per kg, Sindh Rs 110 per kg to Rs 105 per kg, AJK from Rs 120 per kg to Rs 115 per kg and Northern Areas from Rs 130 per kg to Rs 125 per kg, said Belal.
"We are thankful to Parco for its latest price notification which will help keep consumer prices affordable and urged other producers to do the same," said Belal. However, Irfan Khokar, Chairman All Pakistan LPG Distributors Association, said Dr Asim Hussain, Minister for Petroleum has assured the LPG dealers that the government is going to direct the state-run LPG producers including Parco and Oil and Gas Development Company Limited (OGDCL) to further reduce the commodity prices to provide some relief to consumers. But, in the market LPG is selling at higher prices against the claims of the LPG distributors and marketing companies. The commodity is selling at Rs 140-150 per kg in open market, a survey conducted by Business Recorder revealed.
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