OGDCL, PARCO keep commodity prices unchanged for April

State-owned LPG producers Oil and Gas Company Limited (OGDCL) and Pak Arab Refinery Company Limited (PARCO) have kept their commodity prices for April unchanged at Rs 75,000 per ton and Rs 75,500 per ton, respectively exclusive of taxes. This is the sixth month in a row that prices have been kept unchanged and are currently $55 per ton below the Saudi Aramco Contract Price.

“Retail prices are expected to remain stable at Rs 110 per kilo in Sindh and Balochistan, Rs 120 per kilo in Punjab, Rs 125 per kilo in AJK and KP and Rs 130 per kilo in GB and Northern Areas” said Belal Jabbar the spokesman for the LPG Association of Pakistan. The Federal government is keen to reduce LPG prices following the recent increase in LPG production from MOL’s field of Makori which commenced supplies last month. According to OGDCL officials, local LG production has increased from 1,100 tons to around 1,400 tons per day in recent months and it is expected to further increase by around 450 tons per day within next two months.

Country’s total LPG demand stands at 1,400 tons per day to 1,600 tons per day and due to expected increase in production of the commodity the country is likely not only to meet the local demand, but could also export around 300 tons per day in the coming months if local demand remained at current position, OGDCL officials said. The current production from Makori stands at 250 tons per day and is expected to surpass the 300 ton per day mark. Additional supplies of 200 ton per day are expected from fields in Sindh in the next two months, which will increase the country’s production to 1800 tons per day. “The country’s improving LPG supplies is augur well for the ongoing energy deficit and the product will be making its way to fill household as well as industrial and auto-demand” said Belal.

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