SSGC subsidiary issues tenders to import 70,000 tonnes of LPG
A Sui Southern Gas Company subsidiary has issued tenders to buy 70,000 metric tonnes of LPG from the international spot market. Industry sources say imported gas could sell at about Rs460 per kg, against Rs530 to Rs630 now.
For information only, not investment advice. Prices change quickly: check the time and source of every figure.
- SLL, a Sui Southern subsidiary, issued tenders of 20,000 and 50,000 tonnes.
- Imported LPG is estimated at Rs450 per kg on arrival and about Rs460 for consumers.
- LPG currently sells at Rs530 to Rs630 per kg.
- Shipments are expected within about two weeks.
A subsidiary of Sui Southern Gas Company has issued tenders to buy 70,000 metric tonnes of liquefied petroleum gas (LPG), according to industry sources cited by Express News and Daily Times. The plan aims to improve domestic supplies and ease prices during winter.
The subsidiary, SLL, will buy from the international spot market through two separate tenders, one for 20,000 metric tonnes and the other for 50,000 metric tonnes. The company expects the shipments to reach Pakistan within about 15 days.
Express News reported that implementation of a competitive LPG policy has started in Karachi. PSO, Sui Southern and PARCO will also import LPG from global markets, and these government energy companies have been given authority to set the prices of the imported gas.
Company sources estimate that imported LPG could cost around Rs450 per kg on arrival in Pakistan. It could then be supplied to consumers at about Rs460 per kg, which includes a small profit margin. The sources said the imports aim to improve supply and encourage competition rather than earn business profit.
LPG currently sells at between Rs530 and Rs630 per kg across the country. Express News reported that gas imported by government companies is expected to be Rs70 to Rs130 per kg cheaper than current market rates.
Express News gave details of the PSO and PARCO tenders. PSO issued three tenders totalling 44,000 metric tonnes. The first, for 20,000 tonnes, was issued on November 6, with the cargo due in Karachi between November 15 and 25. The second, also 20,000 tonnes, is due in Karachi between November 20 and 30. The third is a 4,000-tonne spot import tender with a bid deadline of November 16.
PARCO Pearl Gas issued a tender for 3,500 metric tonnes, to be bought from foreign suppliers on a CFR basis for Port Qasim, with arrival between November 13 and 15. Together, the PSO and PARCO tenders total 47,500 metric tonnes, with shipments arriving between November 13 and 30.
Background
khabr.pk reported on 3 November that LPG prices had risen sharply since two Iranian border crossings closed on 17 October, according to traders. On 11 November it reported that Petroleum Minister Ali Pervaiz Malik announced BISP-linked LPG relief for eligible families and said international rates put LPG at Rs450 per kilogram. The Pakistan Bureau of Statistics said on 6 November that higher LPG prices helped push short-term inflation to 12.31 percent.
Why it matters for Pakistan
LPG is a widely used household cooking fuel, so import plans affect winter prices. If imported gas sells at about Rs460 per kg, it would be Rs70 to Rs130 below the Rs530 to Rs630 now charged. Rickshaw drivers who run on LPG told khabr.pk earlier that high prices had cut their earnings by more than half. Households and drivers will see any effect only once the shipments arrive and are sold.
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