LPG price set at Rs105 per kg

ISLAMABAD Oil and Gas Regulatory Authority (OGRA) has fixed the consumer price of 11.8 kg cylinder for the current month (July) at Rs1,239 i.e. Rs 105 per kg including distributor margin of Rs70 per 11.8 kg cylinder. OGRA has advised the LPG marketing companies not to exceed the notified consumer prices. In a notification issued on Monday, OGRA said, in view of windfall profit made by LPG marketing companies during last month (June), the LPG consumer price for the current month is being fixed at Rs1,239 per 11.8 kg cylinder. Sources said that LPG marketing companies in a bid to maximize benefits at the cost of poor consumers of remote areas of the country, backed by LPG mogul, by creating artificial shortage, have been increasing the prices of LPG. Conversely, the LPG price observed reduction in international market, sources said, adding that 'LPG mafia, prior to the holy month of Ramzan, is all set to create artificial shortage and price hike of the product only to ensure hefty profits. It is testimony of the fact that despite falling LPG prices in the international market, the LPG marketing companies, without seeking any notification from the authorities concerned, have been jacking up the prices of the product. LPG Distributors Association had been demanding of the government to use its influence on the LPG marketing companies not to announce increase in the prices and bound the local producers to produce LPG as per countrys demand. The Association had also been demanding of the government to revise LPG Production and Distribution Policy for publics benefits. APP adds from Karachi: The price of LPG went up by Rs2 to Rs95 per kilogram in Karachi and interior Sindh as its producers raised their price by Rs8,000 per ton effective July 4. This was stated by the acting chairman of All Pakistan LPG Distributors Association, Mohammad Ali Haider here Monday. He said price of 11.8 kg cylinder has been raised by Rs 20 to Rs 1,100 to 1,110 while 45.4 kg cylinder moved up by Rs 77 to Rs 4232 in Sindh and Karachi. Recording his protest on price hike, he said that producers should also consider the interest of people and the country instead of profiteering. He was of the view that LPG producers should not link their prices to Saudi Aramco Contract Price. This is unjustified as the local cost of producing LPG is Rs 10,000 to Rs 12,000 per ton, he added. Haider said retail price of LPG in Lahore will be Rs 104-105 per kg while 11.8 kilo cylinder would be sold at Rs 1,225 and 45.4 cylinder at Rs 4,713. In Peshawar, LPG will surge to Rs 106-107 per kilo, 11.8 kg cylinder to Rs 1,250-1,260 and 45.4 kg cylinder to Rs 4,848. Haider said that in Swat, Gilgit, Chitral, FATA and AJK, LPG will be sold at Rs 108 per kg and 11.8 kg cylinder at Rs 1,275 while 45.4 kg cylinder at Rs 4,903. He urged the government to maintain its writ to enforce just prices in the country. He said producers have slashed their production by 550 ton per day for profiteering. The government and OGRA must force LPG producers to increase their production and reduce prices which are high due to artificial shortage, he noted. He pointed out that non-taxpayers were taking advantage of this uncertain supply chain. Haider pointed out that some letters of credit (L/Cs) have been opened for the import 8,000 tons of LPG. Two vessels carrying 5000 tons of LPG will be arriving Karachi this month, he added. He pointed out that LPG sale has declined considerably due to artificial price rise by the existing cartel which is not under tax net. This is alarming for LPG industry and its stakeholders which are taxpayers, he observed.

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