ISLAMABAD : Islamabad Chamber of Small Traders (ICST) Patron Shahid Rasheed Butt, on Wednesday, said importers and distributors of LNG are getting over 100 percent profit from the consumers, which was unjustified.

“The benefits of reduced prices of LNG must reach masses as well as the industrial sector, which is suffering from the increased cost of doing business,” he said.

Butt said that LNG importers and distributors had set high profit margins, brushing aside prices fixed by Ogra.

He said that international oil prices were increasing, which would jack up prices of LNG, making it less attractive for the consumers; therefore, a new pricing formula for purchasing the gas should be considered.

“Presently, the country is buying gas from Qatar at 13.37 percent of the Brent Crude, which translates into less than 5 dollars per MMBTU,” Butt said, adding, “However, the gas utilities have set prices very high, demoralising the consumers.”

He explained that the LNG bought on less than 5 dollars, would be sold to the CNG sector for 12 dollars per MMBTU; textile sector will get it for 10 dollars per MMBTU, while IPPs would pay 9 dollars per MMBTU.

“This arrangement has increased the prices, which will transfer all the profit to oil retailers and gas utilities.”