LAHORE, Dec 20: The LPG marketing companies have unilaterally raised the ex-plant price of a 11.8kg domestic cylinder by another Rs20 from Wednesday (today).

Sources in the industry told Dawn on Tuesday that the LPG marketing companies had actually increased their ex-plant rates by Rs40 in the last six days to Rs420 per cylinder from Rs380 per cylinder.

They said the LPG prices had been raised despite the fact that its domestic production had almost doubled to 1,700 metric ton per day from 950 metric ton in the last one year.

They said the LPG marketing companies had decreased their prices by Rs5,500 per metric ton last year on the directives of Prime Minister Shaukat Aziz and the Oil Gas Regulatory Authority in order to promote its use.

“At that time the ex-plant price of a cylinder was fixed at Rs355 and the maximum retail (consumer) price at Rs395. This means the marketing companies have raised the price by Rs75 per cylinder during the last one year,” the sources said.

They said the consumer price would touch Rs500 per cylinder after the latest raise in the LPG ex-factory price by the marketing companies.

The sources said the marketing companies’ decision to raise ex-plant prices by Rs40 per cylinder in the last six days would severely hit the government’s plans to encourage the use of LPG as auto fuel. They said the government needed to intervene and prevent the marketing companies from increasing their prices in order to hold down its rates for domestic consumers around the country.