KARACHI, Nov 4: Prices of Liquefied Petroleum Gas soared to Rs40-45 a kg on Monday, due to persistent shortage in the market. The shortage continues despite the commencement of supply from the Pak Arab Refinery Company (Parco) and Dhodak last week.

Dealers said that Parco and Dhodak decision last month to suspend supply because of their closure for repair and maintenance had created a stir in the market.

“We are filling our cylinder at Rs45 a kg as compared to RS27-30 a month back,” a rickshaw driver said, adding that because of an acute shortage of the commodity many outlets had already pulled down their shutters.

Subsequently, rickshaw and taxi drivers are charging exorbitant fares.

An LPG dealer, who suspended the business last one week, said that an LPG cylinder of 10-10.5kg now cost Rs400 as compared to Rs325 a week back.

An LPG marketing company official hoped that situation would improve as the supply from Parco and Dhodak had resumed.

Besides, National Refinery and Pakistan Refinery have raised the LPG prices to Rs14,200 from Rs13,263 per ton a month back.

Parco, too, has increased the LPG prices to Rs13,210 per ton from Rs12,263, but the company has deferred the implementation of new price during Ramazan. According to a Parco official, the new prices will be enforced from Dec 1.

Also in June, the LPG prices had shot up to Rs50 per kg due to a severe shortage and closure of some outlets.

A refinery official said that LPG was basically meant for consumers of Northern and rural areas, who use it as a fuel. During the last one year, the LPG demand has surged owing to switching over of a sizable number of rickshaws and taxis to it from petrol.

The LPG kit, which is used in rickshaw, is cheaper as compared to the cost of installation of a CNG kit, that is Rs25,000. A rickshaw driver said that the imported LPG kit was now available for up to Rs3,500 against Rs5,000-7,000 a year back. The government has discouraged the use of LPG in vehicles but there is no check on the illegal practice.