ISLAMABAD, March 2: The Oil and Gas Regulatory Authority (Ogra) on Friday reduced the maximum base stock price of liquefied petroleum gas (LPG) to Rs31,949 per ton from Rs33,365, showing a fall of 4.2 per cent.

The new price, however, is 7.3 per cent higher than Rs29,784 per ton fixed for January. The price will remain effective for March.

Ogra in a notification said the prices of Propane and Butane (two components of LPG) were reduced from $545 and $550 per ton, respectively, to $526.

The improved rupee value in February led to the decline in the base stock price.

The Economic Coordination Committee (ECC) of the cabinet last year decided to link the base stock prices of LPG to the import parity price. The domestic prices were thus linked to Saudi Aramco prices.

LPG production prices have increased from Rs17,000 per ton in April 2005 to Rs31,949, up by more than 80 per cent.

The LPG Distributors Association of Pakistan has welcomed the decision, but said that after the calculation of sales tax, the final price would be Rs36,840 per ton.

The association said that the LPG price of residential cylinder (11.80kg) had dropped by Rs20 or Rs2 per kg.

The association said that the private sector had imported 28,500 tons of LPG over the last two months.