LP Gas companies demand an immediate price hike in LP Gas

In the wake of rising world market prices and rupee depreciation, LP Gas companies have made a request from the government authorities to increase the price of a 12.5kg domestic LP gas cylinder by at least Rs. 407 with immediate effect, official sources said on Tuesday.

In addition, prices of the 5kg domestic LP gas cylinder will also be increased proportionately.

Quoting Saudi ARAMCO price index, LP gas companies have noted in a communication to the government that the world market price of Propane has increased to US$605 metric ton.

Accordingly, the current price of the 12.5kg domestic cylinder, which was at Rs. 1,493, should go up to Rs. 1,900. However, the prices will vary according to different districts.

“Price applications submitted by gas companies will have to be passed by the Cabinet of Ministers.  The determination of the price was assigned to the Cost of Living Committee. Considering the rising world market prices and it should be approved and announced by the Consumer Affairs Authority (CAA) in consultations with relevant gas supplier companies,” a CAA official said.

 Noting that the world market prices are fluctuating factors which cannot be controlled by countries, the senior official of the CAA predicted this upward trend in cost would continue till early next year.

“The regulation of gas business is under the CAA. The CAA signed an agreement on the prices in 2007 with then Shell and continued with Litro after the takeover. The same year, a pricing formula was introduced. Since then, there had been many price changes up to now,” he said. (BS)