ISLAMABAD Petroleum Ministry and business tycoons are all set to charge a lofty margin equivalent to US$ 175 per metric tons on LPG from distributors by excluding OGRAs monitoring role in the new proposed Liquefied Petroleum Gas (LPG) Policy. Available documents with TheNation reveal that in the new proposed LPG policy, LPG Marketing Companies have proposed that they will not charge a gross price differential between purchase price and sale price to distributor, of more than Rupee equivalent of US$175 per metric ton. This margin will automatically change annually linked to consumer price index of Pakistan. However, according to Liquefied Petroleum Gas (LPG) Production and Distribution Policy 2006, OGRA would regularly monitor LPG prices and intervene in exceptional circumstances if the consumer prices are considered not reasonable. The Federal Government will continue to follow its deregulation policy. However, to ensure that cartels are not formed for charging a high consumer price of LPG, OGRA will determine the reasonableness of price keeping in view the import parity price of LPG, producer price and audited accounts of LPG marketing companies for the last two years. According to analysts, LPG business tycoons have exploited consumers for a long time due to the Governments flawed deregulation policy of LPG prices. Similarly with this newly proposed policy, consumers will be at the complete clemency of certain LPG groups and proposal to exclude OGRAs role will lead to more cartelisation in LPG to swindle consumers. So if proposed LPG policy is accepted then there will be more cartels and LPG business tycoons will be more empowered to abuse market as nothing significant to provide level playing field to investors for LPG imports to bridge the gap between supply and demand. They are of the view that LPG business tycoons have already formed cartels illegally simply to grab unfair profits and to manipulate the market. Though Competition Commission of Pakistan (CCP) has penalised certain groups yet nothing important has come out to end cartelisation from the market. It is interesting to note that Abdul Hadi Khan Chairman All Pakistan LPG Distributors Association who is also LPG importer has informed that in present scenario, LPG imports are at complete risk because the Government has done nothing with his proposal to waive off GST at import stage of LPG to minimise difference between locally produced and imported LPG to discourage monopoly. Furthermore, it is relevant to mention here that the Economic Coordination Committee (ECC) on December 12, 2007, decided to allow LPG producers to fix LPG prices on monthly basis by delinking it with CP and disallowed OGRA to notify LPG prices. However, OGRA was authorised to monitor producers and consumers price only to keep them at reasonable level within the parameters of LPG Production and Distribution Policy 2006.