LPG price increases by Rs 5

[Lahore_Real_Estate]

KARACHI (May 15 2010): Marketing companies have increased price of liquefied petroleum gas (LPG) by Rs 5 to 65 per kilogram in Karachi and interior of Sindh after a month of depressed market, effective from May 14, 2010. This was stated by the chairman of FPCCI Standing Committee on LPG and All Pakistan LPG Distributors Association Abdul Hadi Khan here Friday.

He said marketing companies have disposed off their 10,000 metric tons stocks at low prices while local producers have slashed their production by 200 MT per day without any valid reason. He said price of 11.8 kg cylinder has been raised by Rs 30 to Rs 680-685 while 45.4 kg cylinder are up by Rs 118 to Rs 2,635.

He pointed out the cut-throat competition between marketing companies coupled with the falling sales volumes has led them to slash LPG prices. Hadi said retail price of LPG in Lahore 68-69 per kg while 11.8 kilo cylinder was selling at Rs 725-735 and 45.4 cylinder is available at Rs 2,828.

In Peshawar, LPG is selling at Rs 71-72 per kilo, 11.8 kg cylinder at Rs 745-750 and 45.4 kg cylinder at Rs 2886. He said that in Swat, FATA and AJK, LPG is being sold at Rs 74-75 per kg and 11.8 kg cylinder at Rs 770-780 while 45.4 kg cylinder is sold at Rs 3,000.

Hadi pointed out that local producers have reduced their production for profiteering. The demand for LPG is 1600 to 1500 MT per day while the production has been slashed to only 1250 MT to make more money. This has imbalanced the demand and supply situation, he noted.

He warned LPG producers to refrain from creating artificial shortage in the country otherwise distributors will resort to agitation against this unfriendly business practice. We will convene an emergency meeting of all the LPG distributors association and stop receiving load from LPG producers and marketing companies.-PR