LAHORE, May 6: The LPG Association of Pakistan has decided to increase the price of liquefied petroleum gas by four per cent from Wednesday.

Under the decision, the price at which LPG marketing companies sell it to distributors is likely to go up by Rs20 per 11.8kg cylinder.

This would mean an increase in the retail price of about Rs1.7 per kg, according to LPGAP spokesman Fasih Ahmed.

He said the prices of petrol and diesel had increased by 17.38 per cent and 21.85 per cent since Feb 28. “During the period LPG prices declined by 27.69 per cent.”

He said the LPG marketing companies had been incurring losses since March and higher transportation costs and producer prices had made it necessary to review the prices.

“The LPG producer price is still higher by eight per cent from what it was in May 2007. Had the government not de-linked the producer price from Saudi Arabian export prices, LPG would have cost 53 per cent more than what it currently does,” the spokesman said.

He said the retail price should not exceed Rs55 per kg anywhere in the country in accordance with the formula laid down by the Oil and Gas Regulatory Authority.