KARACHI, Jan 21: The prices of liquefied petroleum gas (LPG) have come down in Lahore to Rs80-110 from Rs140 per kg after a crackdown on retailers and distributors by the city government.

An official of LPG Dealers Association of Pakistan said that some retailers had been selling the LPG at Rs65-70 per kg in Lahore while its retail rates all over Pakistan were between Rs63 to Rs72 per kg.

Association’s spokesman Fasih Ahmed said on Monday that the number of retail points selling the LPG at Rs65-70 per kg had increased from 55 outlets a few days back to 70, out of over 300 retail shops in Lahore.

He said his company was importing the LPG and a ship carrying 2,500 tons would be arriving at Port Qasim on Tuesday, while the next shipment of 2,500 tons was due next month.

He said the gas had been imported at $873 per ton Saudi Aramco price and it would cost at least Rs800 per 11.8 kg cylinder or Rs68 per kg. It would be mixed with local gas to be sold at Rs65 per kg in retail, he said.

Pakistan had imported 39,000 tons of gas in 2006 and 42,000 tons in 2007, he added.

Mr Ahmed said many distributors and market players were exploiting the higher demand to fleece the consumers. He said that the LPG demand hovered between 1,700 and 1,800 tons per day while the local supply was 1,625 tons per day.

LPG Distributors Association of Pakistan chairman Hadi Khan said that the demand had surged to 2,000-2,100 tons per day while the production ranged between 1,300 and 1,400 tons, leaving a gap of over 800 tons.

He said the LPG demand usually increased in the Northern Areas during winter for heating purposes.