The rates of Liquefied Petroleum Gas (LPG) surged by over 90 percent in Pakistan during the past three years, local media reported on Friday.
Minister for Petroleum and National Resources Dr Asim Hussain told a Senate session on Thursday that during January 2009 to December 2011, LPG consumer prices increased 22 times mainly because of the rise of LPG prices by Saudi Arabian company working for the exploration of natural gas in Pakistan, and market dynamics of demand and supply, local paper The Nation reported.
He said that Oil and Gas Regulatory Authority (OGRA) had intervened for six times during the last three years when consumer price of LPG went beyond the reasonable limit set by the regulatory authority but the prices continued to surge.
Consumer price of 11.8 kilogram LPG cylinder was eight U.S. dollars in January 2009, but its price continued to surge until July 2010 when it reached 10 dollars,official figures showed.
"The consumer price of 11.8 kilogram LPG witnessed sharp increase up to 13 U.S. dollars in July last year and in December 2011 the price surged to 15 U.S. dollars", he said.
Pakistan is a power hungry country, with its natural gas output falling short of meeting domestic demand. As a result, a large number of population has to rely on LPG as an alternative fuel.
According to the latest data from Ministry for Petroleum and National Resources, among 27 million households in Pakistan, 6.1 million are connected to natural gas network and the rest are relying on LPG and conventional fuels. Total LPG consumption in Pakistan is about 0.25 percent of the world market.
Every year LPG consumption increases during the peak winter season to 22,000 metric tons per day as against 18,000 metric tons per day in summer. But in this winter, a sharp decline in the consumption of LPG has been witnessed.
The spokesman of LPG Association of Pakistan, Muhammad Fasih said that rising retail prices of LPG have shrunk its consumption to 1,300 metric tons per day during the peak winter season and further falls may be seen if the price level is not controlled.
He added that the price hike had prompted a large number of consumers to use alternate fuels, including wood, kerosene, etc.
