LAHORE, June 30: Marketing companies are likely to increase ex-plant prices of liquefied petroleum gas (LPG) by at least four per cent from Tuesday on account of higher input costs.

The latest diesel price-hike will have direct impact on primary and secondary LPG transportation costs, said LPG Association of Pakistan spokesman Fasih Ahmed here on Monday. He said that the introduction of the five per cent Petroleum Development Levy on LPG and hike in General Sales Tax rate from 15 to 16 per cent would push up input costs.

“Producer prices are also expected to increase from July 1 that will also impact consumer prices. Despite reduced supply and higher input costs, the LPG marketing companies are still not fully passing on cost increases to the end-consumers,” the spokesman observed.

He said that the local LPG production had also declined to 1,200 metric tons daily from 1,600 tons.

He said that LPG retail prices would have exceeded Rs100 per kg had the previous government’s policy to equate the prices of locally-produced LPG with Saudi Arabian export prices remained in place. He also said that LPG retail prices continued to remain “well within the reasonable limits” agreed upon between the LPG Association and Oil and Gas Regulatory Authority.