LAHORE: Retail price of the liquefied petroleum gas (LPG) has gone up to Rs135 per kilo after state-owned producers increased its base stock price.

The Pak Arab Refinery and the Pakistan Petroleum Limited increased LPG base stock price from Rs69,623 to Rs79,340 per ton following the increase in Saudi Aramco Contract Price for January.

“Inclusive of taxes, the new price is Rs92,136 per ton, which represents an increase of Rs11,274 from the previous month. The new Saudi Aramco CP coupled with the devaluation of the Pakistani rupee has resulted in the highest ever price charged by local LPG producers," said LPG Association of Pakistan spokesman Belal Jabbar on Tuesday.

“The Oil and Gas Development Company Limited and other producers are expected to match the price. The government is the single largest producer and accounts for nearly 65 per cent of all LPG produced in the country.

“In order to ensure that prices remain affordable, LPG companies have and will be procuring regular imports in the month of January to keep the market well-stocked. At the current pricing, the maximum retail price should not exceed Rs135 per kilo, as companies are selling local and imported product on a weighted average basis.

“We also urge the government to exercise restraint and refrain from imposing petroleum levy on LPG which could further increase the local price by Rs13,000 per ton,” said the spokesman.