Pakistan may see improved LPG supplies and lower prices during the winter season as a subsidiary of Sui Southern Gas Company (SSGC) has issued tenders to procure 70,000 metric tonnes of liquefied petroleum gas (LPG) from the international spot market.
According to sources, SLL International, an SSGC subsidiary, has floated two separate tenders for the procurement of LPG, one for 20,000 metric tonnes and the other for 50,000 metric tonnes.
Meanwhile, Pakistan State Oil (PSO) and Pak-Arab Refinery Company (PARCO) are also planning to import LPG from the international market to strengthen domestic supplies. Company sources said shipments carrying the imported LPG are expected to reach Pakistan within the next 15 days.
Imported LPG may cost Rs460 per kilogram
According to company sources, based on prevailing international market rates, imported LPG is expected to cost approximately Rs450 per kilogram upon arrival in Pakistan.
After including a modest profit margin, the fuel could be sold in the local market at around Rs460 per kilogram. PSO, SSGC and PARCO have also been authorised to determine prices for the imported LPG.
Sources said the primary objective of the procurement is to improve domestic availability rather than generate commercial profits.
LPG prices in Pakistan
Currently, LPG is being sold in different parts of the country at prices ranging from Rs530 to Rs630 per kilogram.
The arrival of imported supplies is expected to increase market availability, improve competition and put downward pressure on prices, potentially providing relief to consumers during the winter season.
