ISLAMABAD: Oil and Gas Regulatory Authority (Ogra) has finally come into action to regulate the price of Liquefied Petroleum Gas (LPG), setting it at Rs900 per domestic cylinder following a court order.
The government had been unable to implement the decision of the Council of Common Interests (CCI) to regulate prices of Liquefied Petroleum Gas (LPG) since the past year due to a controversy between the petroleum ministry and the regulator.
The Ministry of Petroleum and Natural Resources had been writing to the regulator to implement CCI’s decision-of regulating LPG prices-but Ogra used various tactics to delay the implementation of the decision, which led to LPG dealers benefiting billion of rupees.
Following the Lahore High Court’s decision, Ogra had set LPG producers price including excise duty at Rs36,808 per metric ton. The regulator set maximum LPG consumer price including general sales tax at 76,500 per metric ton, while the price for 11.8 kg domestic cylinder is Rs900.
The CCI, an inter-provincial body with representation from all provinces, approved the proposal of regulating LPG prices in its meeting on February 29, 2016. After that, the Ministry of Petroleum advised Ogra on March 24, 2016 to set the LPG price for domestic and commercial consumers at Rs895 per 11.8kg cylinder.
Despite repeated advices by the petroleum ministry, Ogra was reluctant to implement the decision to deregulate LPG prices across the country to safeguard interests of the consumers.
Published in The Express Tribune, February 9th, 2017.
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