KARACHI, Aug 11: The price of Liquefied Petroleum Gas (LPG) has touched Rs45 at retail level from Rs35 a kg 10 days back. The gas was selling at Rs25-26 per kg in the month of May and June this year.

Distributors and retailers blame each other for the increase, thus leaving the consumers frustrated. The increase came at a time when the demand usually remains stable. Peak buying season kicks off during October to February when demand usually outstrips supplies in Northern Areas as the gas is heavily used as an alternative to costly fuels.

LPG Distributors Welfare Association (LPGDWA) has cautioned the consumers not to pay more than Rs40 per kg, but retailers continue to do a roaring business by charging Rs45.

The association says that the companies and distributors have not increased he price to that extent. It says that the LPG marketing companies are providing gas to their authorized distributors at the rate of Rs400-410 per cylinder (11.8 kg), which comes to Rs35 a kg, while distributors are selling it at Rs430-440, which comes to Rs37 a kg.

Small retailers and shopkeepers should sell the gas at Rs40 a kg or Rs470-480 per cylinder, the association said.

The association on Tuesday decided to take action against vested interest and market people involved in selling gas at higher rates.

Meanwhile, Manager Commercial and Supply, Pakistan Refinery Limited (PRL), Aftab Husain told Dawn that the producers had kept the prices unchanged at Rs17,000 per ton for the last over six months. “The increase cannot be justified” he added.

He said even the international contract price of protane and butane (Aramco and Kuwait Petroleum Company) had shown a $5 increase in the last one month. The import price of LPG was, however, unchanged at $400 per ton. Some companies import gas in peak season to meet demand and supply gap but in this situation when the demand is low it was unlikely to import gas.

Mr Aftab said that production of LPG had also increased in the country to over 1,350 tons daily as compared to 950-1,000 tons last year due to entry of new producers. If the new producers operate at full capacity the production can be increased to 1,500 tons a day.

However, LPGDWA chairman Hadi Khan linked the increase to slowdown in production by some producers. He claimed that Jamshoro Joint Venture, which started local production last year, had also cut its production, while 120 tons a day of gas, destined for Karachi only, was also not coming from Bobby Gas Field.