KARACHI, Oct 13: LPG marketing companies have reduced the rates of 11.8kg LPG cylinder to Rs520-530 from Rs570-575 since many producers had decided to reverse the increase in rates ahead of Ramazan.

LPG Distributors Association President Hadi Khan said that distributors had also reduced the rates to Rs540-550 per 11.8kg cylinder from Rs580-600.

He recalled that the producers had raised the prices to Rs28,000 per ton from Rs25,000 per ton. After the intervention of Prime Minister Shaukat Aziz and Ogra, they had reduced the rates.

“After the cut in prices by the marketing companies, LPG prices at the retail side is expected to decline to Rs50-51 per kg from the current Rs53-55 per kg,” he said.

During Jan-Sept 2006, some marketing companies had also imported 27,609 tons from various countries to meet the rising demand. Currently, local production stood at 1,600 tons per day, he said.