LAHORE – After reduction in LPG price by PARCO, OGDCL has also reduced its LPG base stock price to Rs70, 000 per ton (exclsuive of duties and taxes) with effect from 2nd May 2012.

Retail prices in different parts of the country are expected to be as follows, Punjab Rs 110, Sindh Rs 105, AJK Rs 115 and Northern Areas Rs 125 per kilo. Prices of domestic and commercial cylinders are expected to decline to Rs 1,300 and Rs 4,995 respectively. The fall in LPG prices augurs well for the market as the product has once again gained competitiveness to other fuels. LPG is currently cheaper than kerosene, furnace oil, petrol and diesel and is at par with CNG.

“This is the third price reduction in the last 30 days as LPG producers have been struggling to offload their stocks” said Belal Jabbar the spokesman for the LPG Association of Pakistan. LPG prices have declined due to a depressed demand, a surge in domestic production and inflow of cheaper product from Iran, said Belal. Currently LPG producer prices are Rs 8,000 per ton below Saudi Aramco CP which was released on the 1st of May at Rs 78,000 per ton.

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The LPG industry has been lobbying for a delinking of LPG prices from Saudi Aramco CP.

 as 90pc of the market is supplied with local product.