LAHORE, Feb 9: Prices of LPG have started falling due to a price war between importers and local producers following decrease in demand.

The prices have fallen by an average Rs2.5 per kg – from Rs57 to Rs55.5 per kg – and are expected to go further down.

Around 25,000 tons of imported gas is available in the country but the demand has fallen by around 30 per cent due to an increase of around Rs8 per kg in prices since Jan 1.

People preferred LPG over wood for fuel purposes because of its low prices but recently the demand for LPG started decreasing as producers increased the prices.

The LPG prices increased by an average Rs19 per kg during the last 19 months, resulting in fall of daily consumption from 2,000 tons to 1,500 tons. The fall in demand has triggered a price war between importers and local producers.

Welcoming the decrease in gas prices, LPG Distributors Association chairman Irfan Khokhar said producers and importers were not ready to reduce the prices but they were forced to do so by the market forces of supply and demand.