Distributors complain: ‘Marketing companies selling LPG at global rates’

Regulator has not increased price in 2016

LAHORE: Liquefied Petroleum Gas Distributors Association Chairman Irfan Khokhar has said that there is a huge gap of around Rs26,000 per ton between prices of imported and locally produced LPG and marketing companies, while taking advantage of this difference, are pocketing millions of rupees every day.

“LPG marketing companies are now in the habit of increasing prices regularly without any notification of the Oil and Gas Regulatory Authority (Ogra), citing the increase in prices in the international market,” Khokhar said.

Ogra had not increased gas prices in 2016, but the marketing companies were selling locally produced gas at international rates, he added. In the international market, LPG prices have risen by $50 to $358 per ton.



In Pakistan, the marketing companies have increased prices by up to Rs5 per kg and now LPG is available at Rs90 per kg in the Lahore Division, whereas in Karachi it is being sold for around Rs85 per kg.

Khokhar said LPG consumption had increased over the years primarily due to depleting natural gas reserves in the country.

In 2015, around 245,678 tons of LPG was imported, whereas local production stood at 629,809 tons.

He said the Ministry of Petroleum and Natural Resources should frame a policy for LPG import in order to purchase sufficient quantity of gas to meet the demand that peaked in the winter season due to curtailment of natural gas supplies.

“The ministry should design a policy for creating a balance between prices of the imported and locally produced gas, otherwise prices will likely rise past Rs250 per kg this winter,” Khokhar added.

Published in The Express Tribune, September 30^th, 2016.

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