A significant development has taken place to improve the availability of LPG and reduce prices during the winter season; a subsidiary of Sui Southern Gas Company (SSGC) has issued tenders for the procurement of 70,000 metric tons of LPG.
According to sources, SLL International—a subsidiary of Sui Southern—will procure the LPG from the spot market. For this purpose, two separate tenders have been issued: one for 20,000 metric tons and another for 50,000 metric tons.
Sources indicate that Pakistan State Oil (PSO) and PARCO will also procure LPG from the international market. According to sources within the SSGC subsidiary, vessels carrying the imported LPG are expected to arrive in Pakistan within 15 days.
Company sources state that, based on current international rates, the landed cost of the imported LPG in Pakistan will be approximately Rs 450 per kilogram; after accounting for a modest profit margin, it could be sold at Rs 460 per kilogram.
Furthermore, PSO, Sui Southern Gas Company, and PARCO have been authorized to set the pricing for the imported LPG. Company sources emphasize that the objective behind this procurement is not to generate commercial profit, but rather to enhance supply within the local market.
Currently, LPG is being sold across the country at prices ranging from Rs 530 to Rs 630 per kilogram. The arrival of imported LPG is expected to increase market supply and lead to a reduction in prices.
