December 19, 2006	Tuesday	Ziqa'ad 27, 1427

KARACHI, Dec 18: Consumers are yet to see any relief in LPG prices despite withdrawal of five per cent customs duty on its import in the first week of this month. The LPG Distributors Welfare Association (LPGDWA) and LPG Association of Pakistan had claimed that the LPG price would decline by Rs1.8-2 per kg but so far nothing has happened as the liquefied gas continues to sell at Rs38-40 per kg at the retail stage.

The government, which had removed the duty for providing some relief to the consumers, did not carryout any follow up of the markets where the players had been reluctant to give any slice to the consumers from their profits.

A retailer said that he knew about the duty cut but the rates had been same from the day of the decision. He said he could not predict any price cut as there had been no change in prices at the level of distributors and marketing companies.

An LPGDWA official, who asked not to be named, adopted a dilly-dallying attitude in giving any cogent reason for allowing no relief to the consumers.

He said actually the government had cut the duty on the import stage and the imported LPG is still selling at Rs48,000-49,000 per ton, while the locally produced gas is available at Rs28,000-29,000 per ton.

However, he claimed that the LP--both imported and locally produced--is selling under cost (Rs37,000 per ton) due to the very thin demand.

He said that after the abolishment of five per cent duty the rate of imported gas should be cut to Rs46,500 from Rs48,000-49,000 per ton, but it had not happened yet.

However, he said that some 4,000 tons of imported gas has been finding way into the market every month. Over 42,000 tons had been imported during January to December 15, 2006.

He said that basically the locally produced LPG sells first in the market and then the imported stuff. Some companies are importing LPG to meet the demand and supply gap in case the demand peaks up in winter season. But so far there has been slow demand of LPG owing to late start of winter. Production of locally produced gas is 1,600 tons per day.