ISLAMABAD: A significant increase in Saudi Aramco Contract Price (CP) will lead to increase in the prices of domestic and commercial cylinders in the local market amid cold season.

The CP increased by $20 per ton, and is further expected to increase.

At the same time, the import of LPG increased by 83 percent as compared to year 2019.

The price of domestic LPG cylinder is likely to go up by Rs60 and commercial cylinder by Rs230, market sources said.

The government has already increased local LPG price by 8.05 percent to 1,530.3/cylinder for November 2020.

In absolute terms, this is an increase of Rs114.05/11.8kg cylinder from Rs1,1416.29/cylinder in October. The new prices would come into effect from November 1. The commercial cylinder price also increased by Rs439 to Rs5,888 from Rs5,449.

The LPG prices increased due to a hike in Saudi Aramco Contract Price for the month of November 2020. As per record, the CP for October 2020 was $379/MT, which increased to $437/MT with the increment of $58.5 per metric ton.

According to the Oil and Gas Regulatory Authority (OGRA), only 21 percent of total population is enjoying cheaper natural gas, and the rest 74 percent is relying on LPG, wood, and other source of fuel.

Copyright Business Recorder, 2020