LAHORE - LPG retail prices are expected to increase by Rs 9 per kilo following the increase in Saudi Aramco Contract Price for January which rose by $86 per ton said Belal Jabbar, the spokesman for the LPG Association of Pakistan.

The new Saudi Aramco CP announced on 31st December stood at $850 for propane and $910 for butane. Taken on a 40:60 ratio, the formula adopted by local LPG producers, the new price worked out to $886 per ton, up from $800 per ton for December. LPG producer prices which are indexed to the Saudi Aramco CP will therefore increased by Rs 9,000 per ton. The impact of this escalation will result in an increase of Rs 105 for domestic cylinder and Rs 400 for commercial cylinder. The retail price is expected to increase up to a maximum of Rs 135 per kilo.

The new CP coupled with the devaluation of Pakistan rupee will result in the highest ever producer price in Pakistan, said Belal. We hope the Government will exercise restraint and refrain from imposing petroleum levy on local production which could further increase the price by Rs 13,000 per ton, spokesman concluded.