LAHORE: LPG producer prices in major cities of the country may increase by up to 12 per cent for November, the LPG Association of Pakistan (LPGAP) said in a statement on Monday.

‘LPG producer prices were linked with the Saudi export prices under a decision taken by the previous government,’ said an LPGAP spokesman.

‘Under the decision, local LPG producer prices cannot exceed the monthly Saudi Aramco Contract Price, which has been notified at $660 per metric ton for November as compared to $587 per metric ton for October.’

The LPGAP spokesman said one public sector LPG producer has already notified its new price for November at Rs55,020 per ton compared with Rs48,720 per ton during October.

Including taxes, the new ex-plant producer price shall be Rs63,921.90 per ton which means an increase of Rs85.7 per 11.8kg cylinder or over Rs7 per kg.

‘The new producer prices will have an immediate impact on nationwide LPG consumer prices,’ said the LPGAP spokesman. ‘Since the government has decided to maintain prices of other POL products, with which LPG has to compete, at October levels, this is likely to affect the competitiveness of the product.’

He said the Saudi CP posted an increase of $75 per ton in September, $4 per metric ton in October, and $73 per ton this month.

In Karachi, LPG distributors expressed fears that the price of LPG may go up by Rs8 per kg.