(AFFILIATED WITH FPCCI)
(Ministry of Commerce Licence No.69)
(SECP CUI No.0067829)

PRESS RELEASE

Local LPG price must fall as Saudi Aramco CP down: Hadi

KARACHI, Aug. 2 - Saudi Aramco Contract Price (international price) of liquefied petroleum gas (LPG) has declined by $ 33 to $ 589 per metric ton in August, creating chances for reduction in its local price by at least Rs 2,800 per MT or Rs 1.50 per kilo. This was stated by the chairman of FPCCI Standing Committee on LPG and All Pakistan LPG Distributors Association Abdul Hadi Khan here Monday.

“In feel that local producers should also reduce their prices in accordance with the reduction in LPG's international prices. More over the sale of LPG has dropped by at least 20 percent due to its high prices and a significant decline in purchasing power of the people", Hadi added.

He feared that LPG sale will drastically decline to 60 percent in Punjab & Khyber-Pukhtoonkhwa due to recent rains and floods. Hadi noted that the local producers can play their "positive" role by reducing LPG prices for poor consumers and increasing its production which has been reduced to 1,200 MT due to shut down carried out by some producers in the last three months. The regular and routine production of LPG is 1,700 MT in Pakistan, he noted.

He said that a total of 24,520 MT of LPG has been imported in the country during the last seven month starting from January 2010 to July 2010. About 4,800 MT of LPG was imported during July 2010 alone in two shipments, he added.

Hadi has suggested Ministries of Finance, Commerce and Petroleum and Natural Resources to exempt import of LPG from GST at terminal level to create a healthy competition in the industry and provide relief to people.

ABDUL HADI KHAN (CHAIRMAN)
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