Consumers struggling with expensive liquefied petroleum gas (LPG) may soon get relief, as the price of LPG could fall by up to Rs50 per kilogram within the next one to two days.
According to news reports, Ali Haider, Convener of the LPG Standing Committee of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), said Iranian LPG bowzers loaded by October 16 have been allowed to enter Pakistan. The arrival of around 900 bowzers is expected to improve LPG supplies.
He said an immediate reduction in LPG prices could begin within the next 24 hours. He also criticised the Oil and Gas Regulatory Authority’s (OGRA) formula for determining LPG prices, arguing that prices should be fixed on a weekly rather than a monthly basis.
Pakistan imported five LPG vessels in October, bringing total imports to 22,000 tons.
According to Ali Haider, Pakistan’s total daily LPG demand stands at 12,000 to 13,000 tons, while Karachi consumes 4,000 to 5,000 tons daily.
In Karachi, 40 per cent of total LPG consumption is attributed to the commercial sector, while 30 per cent is used by industry.
Pakistan plans purchase of LNG for winter demand
The government has decided to purchase 18 imported liquefied natural gas (LNG) cargoes from November to February to meet rising gas demand during the winter season.
Qatar will be the preferred source for procuring LNG at lower prices. However, if supplies from Qatar do not begin, the government will purchase cargoes from the spot market to meet immediate requirements.
According to sources, Prime Minister Shehbaz Sharif has also been briefed on gas demand and availability during the winter, including an assessment of overall domestic gas supplies and rising requirements.
Available information suggests that the country’s total domestic gas availability during winter is expected to remain at around 1.4 billion cubic feet, while gas demand in Punjab alone could reach 1 billion cubic feet.
Sources say domestic gas supplies may prove insufficient even to meet the needs of household consumers during the winter. In view of this situation, the government has decided to procure 18 imported LNG cargoes to ensure additional supplies meet demand from November to February.
