LAHORE: Retail prices of the liquefied petroleum gas (LPG) are expected to go up by Rs9 per kilo following US $86 per ton increase in Saudi Aramco Contract Price for January.“The impact of this escalation will result in an increase of Rs105 for the domestic cylinder and Rs400 for the commercial cylinder while the retail price is expected to increase up to Rs135 per kilo,” said LPG Association of Pakistan spokesman Belal Jabbar here on Sunday.

The new Saudi Aramco Contract Price, announced on Dec 31, stood at US $850 for propane and US $910 for butane. “On the basis of a 40:60 ratio formula adopted by local LPG producers, the new price works out to be US $886 per ton for January, up from US $800 per ton for December. LPG producer prices which are indexed to the Saudi Aramco CP will, therefore, increase by Rs9,000 per ton.

“Coupled with the devaluation of the Pakistan rupee, the new CP will result in the highest ever producer price in Pakistan. We hope the government will exercise restraint and refrain from imposing petroleum levy on local production which could further increase the price by Rs13,000 per ton,” said the spokesman.