KARACHI: The international price of liquefied petroleum gas (LPG) has plunged by $ 202 to $ 993 per ton for April 2012, slashing its import price by Rs 18,400 to Rs 122,000 per ton.
This was stated by the chairman of FPCCI Standing Committee on LPG and Pattern in Chief of All Pakistan LPG Distributors Association (APLDA) Abdul Hadi Khan here Saturday.
He said Saudi Armco Contract Price (CP) has dropped due to fall in prices of butane by $ 185 per ton while propane is up by $ 240 per ton.
Hadi pointed out that due to fall in international price, the domestic price of LPG will be decreased by Rs 18 per kilo, 11.8 kilo cylinder by Rs 212 and 45.4 kg cylinder by Rs 835.
He stressed upon local producers to reduce their price in the country on April 3, 2012, in accordance with the drop in international prices so that the falling sales of LPG are stabilized.
Hadi said that LPG prices have declined after a long time and this decrease should be passed on to local consumers who have abandoned the use of LPG due to extraordinary high prices.
He underlined the need for an increase in local production which has shrank to 900 to 1100 ton per day in the last one year. Local oil refineries should also reduce their shut downs to meet local demand for LPG, he noted.
He observed that LPG use in automotive sector has been slashed by 60 percent due to uncontrolled price jacks by local producers. Similarly, more than 1000 LPG outlets have been closed down due to price hike.
Hadi argued that local LPG production is de-linked with international price, yet local producers are increasing prices in accordance with Aramco prices. He noted that LPG business is rendered unattractive in the country due to very high prices.
He said LPG association had suggested the government to withdraw sales tax on LPG import in the budget 2012-13 in the national interest, to eliminate the monopoly of local producers.
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