RECORDER REPORT

ISLAMABAD: The prices of LPG cylinders increased on Tuesday subsequent to expiry of supply contract between the Sui Southern Gas Company Ltd (SSGC) and the JJVL.

Market sources said that per kg price of LPG cylinder has shown an increase of Rs10 and it will likely increase further in the coming days.

The price of LPG domestic 11.8 kg cylinder increased by Rs50 and Rs450 has been witnessed in case of commercial cylinder. In a letter, the JJVL states that the SSGC has not extended the agreement with the JJVL for LPG and NGL extraction. The agreement expires on June 20, 2020.

This led to a deficit of 300 to 500 metric tons. The LPG, accounts for about 1.2 percent of the total primary energy supply in the country.

This low share of LPG in the total energy is due to supply constraints. Only 24 percent consumers are provided with natural gas, and rest 76 percent rely on LPG, kerosene oil, wood and other fuels. The annual consumption of LPG is 1061447 Mt. Chairman Liquefied Petroleum Gas Industries Association Pakistan (LPGIAP) Irfan Khokhar said that the lockdown hampered the supply line of LPG from Iran through Taftan border as the import of LPG decreased from daily 1,000 ton to 66 tons only, and the SSGCL did not order for fresh import of the LPG to fill the deficit of LPG in the market.