LPG distributors withdraw strike call

Move comes after successful negotiations with government

KARACHI: The liquefied petroleum gas (LPG) distributors withdrew the call for protest scheduled for Saturday after the government separated profit margins for them and the marketing companies and announced that the Oil and Gas Regulatory Authority (Ogra) would notify the gas price after every 15 days.

The decisions were taken at a meeting chaired by Special Assistant to Prime Minister on Petroleum Nadeem Babar on Friday. Ogra, industry officials and office bearers of different LPG association attended the meeting.

"One of the major reasons for the prevailing high price is unregulated import of LPG," said All Pakistan LPG Distributors Association (APLPGDA) Deputy Convener Ali Haider.

"The LPG Distributors Association has called off a protest call against less profit margin and high transportation cost of the commodity in Azad Jammu and Kashmir (AJK), Gilgit-Baltistan and northern areas after successful negotiation with adviser to the prime minister," All Pakistan LPG Distributors Association Chairman Irfan Khokhar added.

"The ministry has accepted all the demands regarding addressing black marketing of LPG. The next meeting of the Economic Coordination Committee (ECC) of the cabinet will take important decision regarding LPG," he said in a statement.

Ogra will issue rates for 15 days' time and distributers and marketing companies' margin would be separately adjusted, he said.

The price would be adjusted for the hilly areas as per transportation cost. It was also decided that action would be taken against the low standard LPG cylinders. A separate notification would be issued for AJK, northern areas, Hazara Division.

"APLPGDA suggested that the profit margin of worth Rs35,000 per ton should be distributed among the stakeholders like Rs15,000 for marketing companies and Rs10,000 each for distributors and transportation," Haider said.

Published in The Express Tribune, April 11^th, 2020.

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