KARACHI, Aug 9: LPG distributors have attributed the 35 per cent increase in gas prices to lower production in refineries, rise in import cost, stoppage in supplies from a big oilfield and shutdowns in some refineries that resulted in widening the gap between demand and supply.

LPG Distributors Welfare Association chairman and vice-chairman Hadi Khan and Ali Haider in a statement denied that the distributors were involved in gas price hike. "The distributors are now bound to sell the gas at only three per cent profit."

"The import cost of LPG has shoot up to $410 per ton from $375 per ton due to which the cost of a 11.8 kg LPG cylinder now comes to Rs398, while local marketing companies are selling the cylinder to the distributors at Rs400-415 per cylinder," they said.

They urged the producers to provide gas to the marketing companies at reasonable rates so that prices could stabilize in the market. The producers claimed that they had increased the LPG price last month but had not raised in the current month.

The price of liquefied petroleum gas (LPG) had surged to Rs38 per kg on August 2 from Rs34-36 per kg last month. Earlier in July, LPG was available at Rs29-30 per kg in the market.