ISLAMABAD, Sept 8: The Oil and Gas Regulatory Authority (Ogra) has decreased the base price of liquefied petroleum gas (LPG) by Rs1,394 per ton (3.86 per cent) with immediate effect.

According to a notification issued on Saturday, the Ogra has fixed LPG base price at Rs34,667 per ton, down from Rs36, 061.

The base price of LPG was increased by Rs557 per ton on September 3, which invited sever criticism from all stakeholders, who questioned the government formula for fixation of the base price of the LPG.

According to the official announcement of the Ogra, the base price has been decreased as a result of the change in LPG pricing policy approved by the federal government.

This decrease in the base price will provide relief of Rs16 per 11.8 kg cylinder to the consumers in the month of Ramazan.

The modification made by the government in LPG producer pricing policy would benefit the consumers as it provides flexibility to LPG producers to sell their LPG at prices even lower than the price notified by the Ogra.

The new policy initiative of the government is aimed at generating more price competition among the producers and LPG marketing companies, which would provide relief to the consumers in the price, the announcement added.