Following the increase in CNG prices, LPG (liquefied petroleum gas) marketing companies have also raised the price of 11.8 kg cylinder from Rs 510 to Rs 530, effective from May 7. The Chairman of LPG Distributors Association, Hadi Khan, said here on Tuesday that the retail price of LPG has gone up by Re 1 and now it would be sold at Rs 48 per kg in the city. He said that some LPG marketing companies have raised their prices despite the fact that producers are paying a rebate of Rs 11 to Rs 15 to the marketing companies to enhance their turnover. He said that this rebate has failed to increase LPG sale as smuggled LPG is sold at Rs 40 a kg in the market. The increase in LPG prices by the marketing companies will create price difference of Rs 8 between the smuggled and the locally produced LPG, thus would cause problems for local distributors, he added. He urged the producers to eliminate payment of rebate and, instead, bring down LPG price to Rs 25,000 per metric ton. Copyright Associated Press of Pakistan, 2008