LPG cylinders price reduced in Sharjah

SHARJAH — Cooking gas consumers in Sharjah have been given a temporary reprieve as the price of cooking gas cylinders is reduced by Dh15 to 20, following a directive from the Sharjah Department of Economic Development's (SDED).



by

Afkar Ali Ahmed

Published: Mon 10 Apr 2006, 11:33 AM

Last updated: Sat 4 Apr 2015, 5:50 PM

SDED's initiative comes as part of a series of measures to rationalise the recent price hike. However, the reduced prices for cooking gas cylinders will be in effect only between April 8 and May 5, according to official sources. They added, these prices are actually “dictated by the international market price. But the authorities have decided to review and revise the LPG cylinder price on the sixth of every month, beginning May 6.”

Following the price reduction in effect from Saturday, the price for the 11 kg small cylinder is now Dh35, a 22kg medium-sized cylinder costs Dh65, while the bigger 44 kg cylinder costs Dh125. The price for the medium-sized cylinder, commonly used by most households, was earlier retailing for Dh85.

Speaking to Khaleej Times, Ali Bin Salim Al Mahmoud, Director-General of SDED said that his department has been closely following the the price hike patterns in the cooking gas prices in the emirate and its impact on consumers. As a result, SDED persuaded officials from companies supplying the cooking gas to address the problem and find suitable solutions — acceptable to all distributors, producers, and consumers.

He added that his department has also coordinated with the main gas manufacturing companies to fix the price of the gas cylinders accordingly. Al Mahmoud said, the agreement between SDED and these companies includes the replacement of the old and expired gas cylinders with new cylinders.

While consumers have expressed relief at the price reduction, distribution companies are lamenting the drop in their profit margins. Mohammed Mahdi, a resident of Sharjah said " I would like to extend my thanks to DED for supporting the general public and minimising the financial burdens of the residents of Sharjah. I hope other departments will now follow this lead with regard to the recent price hikes of other common consumer products. The cost of living in the emirate has become unbearable."

Mona Al Hamadi, said, “I can't express my happiness over this good news of a price reduction in the price of LPG cylinders. I would now be able to manage my domestic budget better and also save a little money."

Mohammed, manager of the Diva Gas Distribution Company, said that he was not happy with the new regulated price set by DED because previously the distribution company made a profit margin of Dh10 per cylinder, but now the profit margin will be reduced to Dh7 which will not be sufficient to offset the company's operational costs.

Junaid.H , manager of Al Shirouq Gas Distribution, said that the drivers of the distribution trucks have demanded a salary raise because of the increasing cost of living.

The fuel cost alone for distribution vehicles used for home delivery has increased and the company spends more money to maintain the trucks and keep them operational to run the business. “But, now with the prices being reduced, the company will not make a good profit.”


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