LPG price shoots up by Rs 3-5 per kg

LAHORE - The retail price of the Liquefied Petroleum Gas (LPG) in Punjab has reached Rs 70 per kg as the LPG producing companies have curtailed their production by 500 tones daily thus creating an artificial shortage in the domestic market. They have also started linking the domestic prices with the international market, LPG Distributors Association said on Tuesday. LPG price recorded Rs 3 to 5 per kg increase in the market on Tuesday as 11.8 Kilograms domestic cylinder recorded an increase of Rs 30 to 50 and 45.4 Kilograms commercial cylinder registered increase of Rs 115 to 230. After Tuesday's increase, domestic cylinder price reached Rs 750 per cylinder, Commercial cylinder at Rs 2, 808 in Sindh and NWFP provinces while domestic cylinder price reached Rs 730 in Punjab and Commercial cylinder at Rs 2924.  The retail price of the gas in Sindh and NWFP reached Rs 73 per kg and in Punjab it reached to Rs 70 per kg. According to a press release, LPG Distributors Association Pakistan Chairman Abdul Hadi Khan complained that due to least interest of the government, prices of the LPG had reached highest point of Rs 70 to 73 per kg. He said it had rendered LPG out of the access of the consumers and made it impossible for the distributors to run their business legally. Hadi Khan said that under given circumstances, distributors were compelled to take a direct action and it seemed that certain elements were trying to increase the sale volume of LPG being smuggled in from Iran. Hadi Khan stated that the marketing companies increased gas prices thrice during the current month. LPG prices were increased by Rs 3 on July 1, another increase of Rs 1 to 2 on July 14 and then again Rs 3 to 5 on July 29, 2008.  He alleged that a cartel of producers was trying to pressurise the government to further increase its prices making the increase in the prices of oil in the international market as an excuse for it. He said that the Prime Minister should not surrender to the pressure of such people and try to bring down the prices and provide time to LPG Distributors Association to gain real picture of LPG business. He said LPG had become a cheaper fuel after increase in petroleum prices but some vested interested wanted to make it out of access of common people.

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