The News reported that after months of keeping their prices below Saudi Aramco contract price, state owned Oil and Gas Development Company Limited and Pak Arab Refinery raised their prices of liquefied petroleum gas to match the contract price for December announced at USD 974 per tonne while the supply constraints from other local source also led to rising trend in its prices.
Parco increased its base stock price from PKR 93,500 per tonne to PKR 93,700 per tonne whereas OGDCL increased price from PKR 87,000 per tonne to PKR 93,685 per tonne with effect from December 3st 2012.
Despite nominal increase in producer price retail prices have jumped up by PKR 8,000 per tonne following shutdown of Jamshoro Joint Venture Limited's facility which met with a fire accident last week.
Mr Belal Jabbar spokesman for the LPG Association of Pakistan said that "Temporary suspension of supplies from JJVL, which accounts for 25% of the country's LPG production, has created a severe shortage in the market. Prices of domestic and commercial cylinders have risen from PKR 1,610 to PKR 1,700 and PKR 6,220 to PKR 6,583, respectively."
He said that "In order to cater to this shortage, JJVL and other companies are importing approximately 7,000 tons of LPG to ensure ample availability during December. The LPG marketing companies are cognizant of their responsibility and are working with their distributors to address the shortage."
