KARACHI - Local producers have increased price of Liquefied Petroleum Gas (LPG) by Rs 3,480 per metric ton despite reduction in Saudi Aramco Contract Price by $ 48 per ton in June 2010. This was stated by the chairman of FPCCI Standing Committee on LPG and All Pakistan LPG Distributors Association Abdul Hadi Khan here Thursday. He said that local producers in connivance with the marketing companies have arbitrarily raised prices of LPG before the Federal Budget and created a crisis in LPG business. He alleged that they have started fleecing the customers as the stock of LPG importers have been sold out three weeks ago. This shows that the grip of the government authorities have been eased on LPG producers and marketers. He pointed out that some producers are selling LPG at Rs 46,500 per ton while others at Rs 55,778 per ton. Hadi said that with this rise, LPG is now selling at Rs 75 to 76 per kilogram in Karachi, 11.8 kg cylinder at Rs 800 to Rs 830 while 45.4 kg cylinder at Rs 3,078 to Rs 3,194. Retail price of LPG in Lahore is Rs 76 to 77 per kg while 11.8 kilo cylinder was selling at Rs 810 to Rs 840 and 45.4 available at Rs 3,117 to Rs 3,232. In Khyber-Pakhtunkhwa, LPG is selling at Rs 80 per kilo, 11.8 kg cylinder at Rs 850 and 45.4 kg cylinder at Rs 3,270. He said that in Swat, Gilgit, FATA and AJK, LPG is being sold at Rs 84-85 per kg and 11.8 kg cylinder at Rs 875 while 45.4 kg cylinder is sold at Rs 3,366. Hadi pointed out that local producers have reduced their production by 500 MT to 1200 to 1200 MT for profiteering. The demand for LPG is 1700 MT per day. He alleged that LPG producers were using their influence in the bureaucracy to place a ban on the import of LPG in the forthcoming budget. Hadi said that on the one side, international crude prices are falling while, on the other, the local LPG producers have increased the prices in the country. He was of the view that the producers were openly challenging the writ of the government and thus creating a crisis like situation in the LPG sector and its sales are falling.