"A total of 48,152 tons of LPG has been imported between the first ten months of current year." — File Photo

KARACHI: The price of imported liquefied petroleum gas (LPG) has surged by Rs 12,000 to hit record high at Rs 95,000 per tons as Saudi Aramco contract price (CP) climbed by $ 93 to touch $788 in the international market.

This was stated by the chairman of FPCCI Standing Committee on LPG and All Pakistan LPG Distributors Association Hadi Khan in a statement here Monday.

He said that though the imported price of LPG has registered the unprecedented rise in the local market, the importers did not raise its retail prices.

Hadi urged the government to ensure that local producers should not raise the price of locally produced LPG in proportion with Saudi Aramco.

He also urged the government to remove 17 percent sales tax on the import of LPG to ensure that its prices are not enhanced and in the country.

The local retail prices of LPG will be increased to unprecedented level, discouraging its general consumers to quite its use for good, he noted.

Hadi pointed out the consumption of LPG in the winter has been enhanced from 1900 tons to 2000 tons per day whereas local producers were still producing 1400 to 1500 tons per day, creating a huge gap of 500 ton between the demand and supply.

There is an urgent need to discourage the opportunity created for profiteering in LPG business. The withdrawal of sales tax on imported LPG is must to reduce the difference between LPG’s demand and supply and to facilitate its import, he observed.

Hadi said that a total of 48,152 tons of LPG has been imported between the first ten months of current year starting from January to October 31, 2010.

This is the reason why the LPG prices are still stable in the country, he added.