LAHORE – After months of keeping prices below Saudi Aramco Contract Price, state-owned OGDCL and Pak Arab Refinery have raised LPG prices to match CP for December announced at $974 per ton.

The PARCO increased its base stock price from Rs. 93,500 to Rs 93,700 per ton whereas OGDCL increased its base stock price from Rs 87,000 to Rs. 93,685 per ton with effect from 3rd December 2012. Despite the nominal increase in producer price, retail prices have jumped by as much as Rs 8,000 per ton following shutdown of JJVL’s facility which met with a fire accident last week. “Temporary suspension of supplies from JJVL which accounts for 25 per cent of the country’s LPG production has created a severe shortage in the market”, said Belal Jabbar the spokesman for the LPG Association of Pakistan. Prices of domestic and commercial cylinders have arisen from Rs 1,610 to Rs. 1,700 and Rs 6,220 to Rs 6,583 respectively. “In order to cater to this shortage, JJVL and other companies are importing approximately 7,000 tons of LPG to ensure ample availability during the month of December.

LPG marketing companies are cognizant of their responsibility and are working with their distributors to address the shortage” said Belal.

Currently retail prices are as follows in different parts of the country; Rs 140 per kilo in Sindh and Balochistan, Rs. 145 per kilo in Punjab, Rs. 150 per kilo in AJK and Khyber Pakhtunkhwa and Rs 155 per kilo in Northern Areas.