ISLAMABAD  - The international price (Saudi Aramco Contract Price) of liquefied petroleum gas (LPG) has declined by $13 to $955 per ton for January 2013, decreasing local prices by Rs 1,275 to Rs 128,500 per ton.

All Pakistan LPG Distributors Association (APLDA) Chairman Abdul Hadi Khan, in a statement issued on Monday, said that with this fall in CP, the domestic price of LPG has decreased by Rs 1.5 per kg, price of 11.8 kilo cylinder fell by Rs 18 and 45.4 kg cylinder by Rs 68.

He called upon local producers to cut their prices on Jan 3 in the country in accordance with the fall in Saudi Aramco price and raise in local production of LPG which was stagnant at 800-850 tons per day since long.

He said that LPG demand has surged to 2100-2200 tons per day since the start of winter season, adding that local producers must keep in mind the miseries of LPG consumers.

The LPG can be promoted as the alternate fuel in the current energy crisis.

Hadi noted that the scope of LPG is bright specially in commercial vehicles, if local producers enhance their production and delink their prices from Saudi Aramco Contact Price (CP) and instead link it with their cost of production.

A large number of commercial vehicles can be converted to LPG, if its prices are linked to the cost of local production.

He said that LPG import has surged by 12.34 percent to 47,671 tons during 2012 due to limited production of LPG, whereas 42,432 tons were imported during 2011.

Import of LPG can be reduced and import bill will decline, if local producers increase LPG production in the country, he added.