International rates' decline: local producers asked to slash LPG price

The international price of liquefied petroleum gas (LPG) has declined by $27.50 to $842.50 per ton for September 2011, and local producers must reduce LPG price by Rs 2500 per ton immediately. This was stated by the acting chairman of All Pakistan LPG Distributors Association (APLDA) Mohammad Atique Khan the other day.
He said viz Saudi Armco Contract Price (CP) the price of propane has slipped by $45 to $790 per ton while butane fell by $20 to $865 per ton. Following the decline in the international pricing benchmark for the fuel, the price of LPG should be reduced to Rs 2.5 per kg, Rs 30 per 11.8-kg cylinder and Rs 114 per 45.5-kg cylinder, he added. Atique urged local producers to announce a cut at the earliest so that LPG could become affordable for domestic consumers.
High LPG prices are out of reach of poor consumers and therefore, its sale has also declined by 45 to 55 percent in previous months, he added. He said that most of the distributors have closed their businesses due to high LPG prices. Atique said it was the right of the domestic consumers to enjoy 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 switched to CNG.
Similarly, in remote and hilly areas, people now prefer 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 acceptable to every stakeholders so that the prices could be brought down to a 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.-PR