LAHORE, Dec 2: The Pak-Arab Refinery Company has maintained its LPG price at Rs103,525 per metric tonne, inclusive of taxes for December.

This has put an end to speculation that the local producer was going to increase its price by Rs46,000 to Rs150,000 per tonne in line with the hike in Saudi Aramco Contract Price. The Saudi Aramco CP with which local producers usually index their prices rose to $1175 per tonne on Dec 1.

However, this is the third month that Parco has maintained its price at $840 per tonne.

“We are very thankful to the government for maintaining its LPG base stock price for December as it will help ensure that product remains affordable for the end user,” said Belal Jabbar, the spokesman for the LPG Association of Pakistan which is a grouping of all Ogra-licensed LPG marketing companies.

LPG demand typically increases with the onset of winter as households and industrial units switch over to LPG.

“The LPG companies have adequate stocks available with them for this winter and will continue to build up their inventory so that product remains available at an affordable price,” said Belal.

Retail LPG prices are expected to remain stable at Rs130 per kg in Sindh and Balochistan, Rs140 per kg in Punjab and Rs150 per kg in AJK and Northern Areas.

LPG companies will maintain their prices notified last month without any change.

“We urge Ogra to monitor prices being charged by LPG distributors and take stern action against them if they are found over-charging consumers,” said Belal.