Price of liquefied petroleum gas (LPG) in the country is likely to jump by Rs 9 per kg from May 3rd. It is learnt here on Sunday as the international price of liquefied petroleum gas (LPG) has jumped by $96 to record high of $980 per ton for May 2011, raising its import price by Rs 9,043 to Rs 97,560 per ton, the highest ever in country's history.
Owing to the monopoly of LPG marketing companies, the domestic prices are likely to jump by Rs9 per kg on May 3. The price of 11.8kg cylinder is expected to increase by Rs 105 and that of 45.4 kg cylinder by Rs 412. However, it all depends on the local producers whether they enhance their price in accordance with international price.
The Liquefied Petroleum Gas (LPG) Distributors Association on Saturday demanded of the government to use their influence on the LPG marketing companies for not announcing increase in the prices. Vice-chairman LPG Distributors Association Ateeq Khan said that it is expected that marketing companies would announce increase in prices by Rs 9 per kg, despite the fact 'we are not importing gas and use all the domestic production'.
He feared urged the local producers not to raise domestic prices in accordance with the international price and keep them stalled at the level of April 2011. It is worth mentioning here that the sale of LPG has already declined and will further fall if local producers adjusted their prices according to Saudi Aramco CP of May 2011.
He said that the companies had not imported LPG for the last two to three months, because the demand was not so high and local resources were fulfilling the domestic demand. Reason behind the low demand of LPG is that rickshaws were converted from LPG to CNG and which, earlier, were the biggest consumers of the LPG, he said. Instead of increase in prices, the association vice-chairman underlined the need to bring down local LPG price to around Rs 65 per kilo so that the negative impact of international oil prices on the national economy should be offset.
Armco Contract Price (CP) surged to $980 per ton for May 2011 due to disturbed political situation in the Middle East. The price of propane and butane (LPG by-products) jumped by $70 per ton and $105 per ton respectively.