After searched few other places, I am answering my own questions, might be helpful for someone in future. Actually I had set correct scope in my question. Probably I wasn't printing the output correctly. But below code definitely works.
Note: location here in the below query refers to current Location.
$userFriend_profile = $facebook->api('/me/friends?fields=name,location&limit=20');
$total = count($userFriend_profile['data']);
for ($i = 0; $i < $total;)
{
if(isset($userFriend_profile['data'][$i]['location']['name']))
{
$city_Value = explode(',',trim($userFriend_profile['data'][$i]['location']['name']));
}
$i = $i + 1;
}