LPG Producers Keep Prices UnchangedJuly 5, 2015
Lahore: Despite a crash in global LPG prices, local LPG Producers have kept their prices unchanged from last month.
Oil &Gas Development Company Limited, Pak Arab Refinery Company, Pakistan Petroleum Limited and Sui Southern Gas Company which account for more than 75% of the country’s LPG Production and are stet owned have refused to lower their prices in line with the fall in Saudi Aramco Contract Price- a leading international benchmark for LPG prices.
The Saudi Aramco CP for July has fallen to a record low of USD 413 per MT or Rs. 41,300 per MT (exclusive of taxes). However OGDCL, PARCO and PPL have maintained their prices at Rs. 52,000 per MT, whereas SSGC has maintained it’s at Rs. 50,000 per MT.
“The LPG consumer is suffering and having to pay higher prices due to the monopolistic position of Sate Owned LPG Producers” said Mr. Farooq Iftikhar, the Chairman of the LPG Association of Pakistan.
The Ministry of Petroleum had earlier initiated a policy of regulating the LPG sector and bringing the LPG prices below the International level in order to provide relief to the consumers. That policy has been side tracked as LPG Producers continue to charge prices well in excess of international prices.
“We fail to understand why the LPG Producers have been given a free hand by the Government to fleece LPG Consumers, when this is not the case with other petroleum products” stated Mr. Iftikhar.
LPG Consumers are paying at least Rs. 150 more for each cylinder, because of the prices being charged by LPG Producers. For years the GOP had maintained its policy of keeping local prices at parity with international prices. Although that policy still remains in effect, the Government is reluctant to enforce it, leaving consumers with no option but to pay higher prices for locally produced LPG.