LPG residential cylinder rate up by Rs120, commercial by Rs455

LAHORE: The retail price of Liquefied Petroleum Gas (LPG) has increased by Rs10 to Rs200 per kg, pushing residential cylinder rate up by Rs120 to Rs2,475 and commercial cylinder price up by Rs455 to Rs9,532 on an increase in demand.

The supply of LPG in the market has not been according to demand as many domestic and commercial consumers have turned to turn to LPG because of low or no gas pressure, said market insiders.

The commercial users including ‘tandoor’ owners have complained that they have to partly rely on LPG throughout day, while after 8pm, natural gas supply completely stops, they said. In such a situation, the cost of energy tends to increase considerably, they lamented.

Meanwhile, LPG Distributors Association of Pakistan has demanded of the government to take notice of artificial shortage in the market, saying no new tax had been imposed on LPG so its price should not be increased, they urged.

The association’s chairman Khalid Khokhar was of the view that the price of LPG was decreasing in the international market, whereas it was increasing in Pakistan. He asked the government to take immediate notice of the price hike and artificial shortage of LPG in the market.

It may be noted that use of LPG as domestic and commercial fuel has been on the rise on ongoing shortfall of natural gas. LPG is also being increasingly used in rickshaws and other transport as it is considered as a cost-effective option. The supply of LPG was streamlined with its distribution at relatively affordable prices, promoting healthy competition across LPG supply chain.

Owing to its rising demand, latest data indicates that liquefied petroleum gas imports jumped by 39.86 percent during July-April FY2022. Hence, its prospects a bright on the back of projections that LPG continues to play an important role in the energy mix of the country as it provides a cleaner alternative to biomass-based sources, especially in locations where natural gas is not available.