After the increase, retail prices in Karachi, Lahore and Peshawar will be Rs76-77, Rs79-80 and Rs81-82 per kg respectively.

The producers have raised prices after an increase in the Saudi Aramco contract price to $660 in November from $581 in October.

All Pakistan LPG Distributors Association Chairman Abdul Hadi Khan said that 50 million consumers would be affected by the price hike during winter when LPG demand went up sharply.

He said that over 7,000 LPG distributors were already facing problems because of persistent fall in their sales.

Despite de-linking of the LPG price from the international market, local producers raised the price by Rs21,974 per ton for the Jan-Oct period this year.

The Saudi Aramco contract price surged by $209 per ton during the period and Pakistan imported 61,358 tons of LPG.

Mr Hadi alleged that producers were producing 1,450-1,500 tons of LPG against a demand for 1,700 tons per day to create an artificial shortage. The demand, he said, would rise to 2,100-2,200 tons per day during the peak winter season.

‘Producers’ failure to meet the rising demand will lead to a further increase in prices.’

He urged the government to remove 16 per cent sales tax on import of LPG in order to offset the impact of rising Saudi Aramco contract price.