Islamabad (Commerce Desk) Due to an unprecedented increase in liquefied petroleum gas (LPG) prices in Pakistan, the public is being forced to buy gas at exorbitant rates. Meanwhile, in the presence of the relevant authorities, more than Rs1.4 billion in additional charges have allegedly been collected from consumers in just five days.
According to Irfan Khokhar, Chairman of the LPG Distributors Association, Pakistan consumes 60,000 to 65,000 kilograms of LPG daily. However, due to the change in weather, consumption has increased to 70,000 kilograms.
He said the Oil and Gas Regulatory Authority (OGRA) has fixed the LPG price at Rs280 per kilogram, but it is being sold in the market at Rs600 to Rs625 per kilogram. As a result, consumers are paying more than Rs320 extra per kilogram, meaning the public has paid over Rs1.4 billion in additional charges in just five days.
According to Irfan Khokhar, despite the presence of the relevant authorities, arbitrary LPG prices have been charged over the past five days, but OGRA has not yet taken action against any plant.
According to OGRA sources, the matter has been under discussion in meetings for the past two days, with officials considering which authority should take action against violators. OGRA is authorised to take action only against LPG marketing companies and plant owners; however, no action has been taken against any plant so far. Meanwhile, the Pera Force has taken action against more than 10 shopkeepers in Lahore and other parts of Punjab.
Shopkeepers say the LPG mafia is supplying gas to them at Rs550 per kilogram, making it impossible for them to sell it at the official rate of Rs280 per kilogram. They said that during enforcement operations, authorities also seize gas-filling equipment and impose fines, forcing them to consider shutting down their businesses.
On the other hand, Sheikh Mukarram, President of the LPG Importers Association, said LPG supplies had been disrupted and a shortage had emerged due to the closure of the Taftan border, resulting in a sudden increase in prices. He also said OGRA’s notification was incorrect because transportation costs were being calculated on the basis of rates from 2010.
According to Sheikh Mukarram, the transportation cost for LPG bowsers ranges from Rs50,000 to Rs60,000, but OGRA is not revising transportation expenses. He said he had informed OGRA’s chairman and other senior officials about the situation dozens of times, but his complaints had not been addressed.
He said the situation could spiral out of control if businesses were shut down, making an immediate solution essential.
According to Irfan Khokhar, 70 per cent of Pakistan’s total LPG requirements are met through imports, while the remaining 30 per cent comes from domestic production. He urged the government to take immediate control of the situation so that the public could be provided with affordable LPG at officially fixed prices.