LAHORE, Dec 3: LPG producers and marketing companies on Wednesday announced substantial reduction in their prices in order to pass on benefit of falling global oil prices to end-consumers.

“LPG marketing companies welcome the significant price reductions notified by private and public sector LPG producers and have responded by also reducing their wholesale prices to facilitate LPG end-consumers nationwide,” said Fasih Ahmed, a spokesman for the LPG Association of Pakistan, a group of LPG marketing companies.

LPG producers, JJVL, PARCO and OGDCL, reduced their prices on Wednesday from about Rs46,240 per metric ton in November to about Rs31,871 per metric ton for December (both prices inclusive of applicable taxes).

This is the lowest producer price since December 2006.

Ahmed said his companies, Lub Gas and Mehran LPG, reduced the wholesale price of an 11.8kg cylinder from Rs660 to Rs600 in Karachi; from Rs655 to Rs605 in Hyderabad; from Rs690 to Rs600 in the Punjab; from Rs690 to Rs600 in Dakhni; and from Rs700 to Rs610 in the NWFP, FATA and the Northern Areas.

“The impact of these price reductions will be manifest at the retail level within a week’s time when older, more expensive stocks would be consumed,” said Ahmed, adding that he LPG retail prices are soon expected to come closer to Rs56 per kg.

“These price reductions demonstrate that the LPG sector is keenly aware of its responsibilities towards the end-consumer and remains highly responsive to the market realities,” he said, adding that LPG would remain available at affordable prices during the Eid holidays and throughout winter.