This is the second increase in the price of the commodity within a short span of 10 days as the marketing companies on May 26 increased LPG price by Rs 15 per Kg, Rs 180 per domestic cylinder and Rs 720 per commercial cylinder, Khokar said. On May 03, the local LPG produces reduced the commodity price by Rs 7,000 per ton from Rs 78,000 per ton to Rs 71,000 per ton (exclusive of taxes) following a reduction in Saudi Aramco Contract Price (CP) and declining demand.
Local domestic as well as industrial consumers have increased the use of LPG due to gas shortage in the country. The Pakistan's local LPG production stands at around 1,200 ton per day. The LPG is mainly used an alternative fuel for cooking and heating in the rural areas as well as in urban areas following serious gas shortage. Moreover, it also used in the Rickshaws as a replacement of petrol and CNG.
He added that the current hike in the LPG prices is illegal and his body will not accept the increase in the LPG prices and would launch a protest against the behaviour of LPG marketing companies. Khokhar said that the commodity prices have been increased by only $1 per ton in the international market, while the local LPG marketing companies have increased the commodity price by Rs 10 per kg. In January 2013 LPG was being traded at $910 per ton, which now has reached at $760 level.
He maintained that after the current increase in LPG price the average price of the commodity across the country has been increased by Rs 10 per kg, Rs 120 per domestic cylinder (11.8 kg) and Rs 480 per commercial cylinder (45 kg). He said that after the current hike in LPG prices, the commodity is being sold at Rs 135 per kg in Azad Kashmir and Gilgit Baltistan areas, while in Karachi at Rs 125 per kg, Lahore, Islamabad and Mansehra at Rs 120 per kg.