Hike in Saudi Aramco CP to Hit Local Market

The substantial rise in the Saudi Aramco Contract Price (CP) would lead to an increase in local market prices for domestic and commercial cylinders in the cold season. The CP rose by $20 per ton and is expected to rise further.

At the same time, LPG imports rose by 83 per cent compared to 2019. It is likely that the price of the domestic LPG cylinder will increase by Rs60 and the commercial cylinder by Rs230, market sources said.

For November 2020, the government has already raised the local LPG price by 8.05 percent to 1,530.3/cylinder.

This is an improvement of Rs114.05/11.8kg cylinder from Rs1, 1416.29/cylinder in October, in absolute terms. The new rates should take effect from 1 November onwards. The price of the commercial cylinder also rose from Rs5, 449 to Rs5, 888 from Rs439.

As a result of a rise in the Saudi Aramco contract price for the month of November 2020, LPG prices rose. The CP for October 2020 was $379/MT as reported, which increased to $437/MT with an increase of $58.5 per metric ton.

Just 21% of the total population receives cheaper natural gas, according to the Oil and Gas Regulatory Authority (OGRA), and the remaining 74% rely on LPG, wood and other fuel sources.

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