ISLAMABAD, Dec 8: As the chilly weather is getting harder, the average national price of liquefied petroleum gas (LPG) reached a record high in the first week of the de-regulation of price mechanism hitting the rural, population particularly those living in the hilly areas.

Data issued by the Federal Bureau of Statistics (FBS) on Saturday shows that the LPG prices climbed to Rs723.65 from Rs699 for an 11.8 kg cylinder of LPG on the week ending Dec 6, which was already pinching the rural poor.

The LPG is mainly used an alternative fuel for cooking and heating in the rural areas.

The increase in the prices came after the government de-linked prices of local LPG from the international market on Nov 30, raising suspicions that the government cared more for the local producers who are always after maximizing their profits, than the interests of the poor consumers.

The statistics showed that the average price of 11.8 kg LPG cylinder reached Rs578.85 in 2006-07 from Rs492.72 a year ago, indicating an increase of Rs86.13.

Now this national average price has escalated to Rs724 in the first half year of the year 2007-08.

Analysts anticipate a further increase in prices when demands peak in January next. And in case of constant supplies from the local producers, there is hardly any chance of a big leap in prices, they said.

They said the price of LPG went up in the wake of government’s move to link the base price of local stock with international market since Jan 3. And it would be now very difficult for policy makers to bring the rate to December 2006 level, they added.

The LPG price did not record the growth in a greater quantity only in three cities, Lahore, Karachi, Bannu and Hyderabad, as compared to the rest of the country because of low transportation charges and other margins.

Official figures, compiled by the FBS, available with Dawn indicated that the average consumer price of the LPG cylinder reached Rs830 in Bahawalpur, followed by Rs800 in Sargodha, Rs780 in Chitral, Rs770 in Dir, Rs750 in Swat, respectively.

This was one of the sources for heating and cooking in those chilly areas as prices of firewood had already skyrocketed.

The statistics showed that the price of 11.8 kg LPG cylinder reached Rs770 in Multan, Rs750 in Sialkot and Quetta, Rs748 in Gujranwala, Rs742 in Sukkur, Rs726 in Larkana, Rs720 in Khuzdar, Rs715 in Peshawar, Rs630 in Quetta and Sialkot, Rs625 in Faisalabad and Rs620 in Bannu.

The average price per cylinder rose to Rs700 in Islamabad, Rawalpindi and Faisalabad. However, the price of 11 kg LPG cylinder stood at Rs638 in Karachi, Rs682 in Lahore, and Rs660 in Hyderabad, the lowest increase as compared to national average.

Analysts said that the government should take action against those retailers who were charging higher prices from consumers.

The latest increase in the average national price of LPG in the wake of price de-regulation could not have come at a worse time for rural population in Pakistan as the chill in the winter weather is getting harder.

In Pakistan 1,600 tons LPG is being produced daily and the total monthly local production reaches 48,000 tons. Only 4,000 to 5,000 tons is being imported annually to meet the demand and supply gap.

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