LPG’s Aramco price hits record high at $ 980 per ton

The international price of liquefied petroleum gas (LPG) has jumped by $ 96 to record high at $ 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.
This was stated by the chairman of FPCCI Standing Committee on LPG and All Pakistan LPG Distributors Association (APLDA) Abdul Hadi Khan here on Saturday.

He said Saudi Armco Contract Price (CP) has surged to $ 980 per ton for May 2011 due to disturbed political situation in the Middle East. The price of propane has jumped by $ 70 per ton while butane is up by $ 105 per ton, he added.

Hadi pointed out that domestic price of LPG will be increased by Rs 9 per kilo, 11.8 kilo cylinder by Rs 105 and 45.4 kg cylinder by Rs 412 if the local producers also enhanced their price in accordance with its international price.

He feared that the use of LPG will be restricted to rich only, depriving poor from this essential fuel. This is the highest ever international and local price of LPG in the history, he noted.

He urged the local producers not to raise domestic prices in accordance with the international price and maintain LPG prices at the level of April 2011 in the national interest and for the cause of country’s LPG industry.

The sale of LPG has already declined to 35 percent and will further fall to 15 to 20 percent if local producers adjusted their prices according to Saudi Aramco CP of May 2011, he added.

Hadi noted LPG and CNG is the locally produced fuel, but some elements have maintained a price difference of Rs 50 to 60 between LPG and CNG.

He said commercial auto sector prefers LPG over CNG for the safety of engine and enhance its capacity.

He said the government and producers have the responsibility to save the livelihood of 1.5 million attached to LPG sector.

Hadi 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 off set.

This can ensure the availability of LPG to common man as cheaper fuel and reduce oil import bill.