OGRA warns of cancelling licences

Says companies are making hefty profits by charging high prices.


Zafar Bhutta June 29, 2011

ISLAMABAD:


The Oil and Gas Regulatory Authority (Ogra) warned on Wednesday that it would cancel licences of those Liquefied Petroleum Gas (LPG) marketing companies, which were involved in overcharging consumers.


Speaking at a press conference, Ogra Acting Chairman Mansoor Mazaffar said LPG producers were providing gas to marketing companies at a discounted rate of Rs65,000 per ton against actual price of Rs80,000 per ton. “But marketing companies are charging Rs120 to Rs130 per kg against the price of Rs105 per kg worked out by Ogra,” Muzaffar said, adding these companies had been served notices and explanation had been sought.

He said the marketing companies were receiving LPG at Rs65 per kg from gas producers, but they were making hefty profits by selling it at Rs120 to Rs130 per kg.

He said Petroleum Minister Dr Asim Hussain had taken notice of the sharp increase in LPG prices and stern action would be taken against the companies involved in overcharging consumers.

“LPG marketing companies have failed in providing any relief to the consumers. Time has come when it will no longer be tolerated that the licensees are getting richer by exploitation of demand and supply dynamics,” said a warning letter sent to the marketing companies on Wednesday.

Published in The Express Tribune, June 30th, 2011.

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