Nominal fall in LPG prices likely

LAHORE: Following the reduction in Saudi Aramco contract price for LPG, which fell from $974 to $955 per ton, local LPG prices are likely to decline by Rs1,900 per ton or almost Rs2 per kilo with effect from Jan 3, 2013, according to an announcement by then LPG Association of Pakistan.

“The market was anticipating a far greater decline given the already high CP of December, but demand from Western Europe and China has remained strong” said Belal Jabbar, the spokesman for the LPG Association of Pakistan.

Under the present pricing regime whereby local producer prices are indexed to Saudi Aramco CP, LPG producers are likely to reduce their price by a nominal amount of Rs1,900 per ton.

“The actual impact of the decline may not be felt in the market since any decline in CP will be offset by the depreciation in Pak rupee,” he said.

Posted in: Business news