OGRA hikes price by Rs23.86/kg

All-Pakistan LPG Association chairperson warns of nationwide strike if rate is not regulated

ISLAMABAD:

The Oil and Gas Regulatory Authority (OGRA), on Monday, has permitted a significant increase in the price of Liquefied Petroleum Gas (LPG) for the month of August 2023, raising it by Rs23.86 per kilogram. As per OGRA’s notification, the new price of LPG per kilogram is fixed at Rs201.15, resulting in a rise of Rs281.5 for the 11.8 kg domestic cylinder and Rs1,083 for the commercial cylinder.

Following the Rs 24/kg price hike, the domestic cylinder now costs Rs2,373.64, up from Rs2,092.13, while the commercial cylinder price has surged to Rs9,132 from Rs8,049. In response to the price increase, Chairman of the All-Pakistan LPG Association, Irfan Khokhar, expressed concern over the affordability of LPG for consumers. He said the price has gone beyond the purchasing power of the consumers, and accused the LPG mafia of profiting at the expense of consumers, disregarding the official price set by OGRA. He urged the regulator to take decisive action against those involved in black marketing and hoarding.

Khokhar warned that if the supply of LPG at the regulated price is not ensured, a nationwide strike will be held on August 5 and 6, putting pressure on the regulator and government authorities.

The government had previously secured a Public Procurement Regulatory Authority waiver for Sui Southern Gas Co to procure LPG and provide consumers with gas at cheaper rates. However, this approach did not yield the expected results, and consumers continue to face higher prices compared to the OGRA-notified rates.

The PTI-led government had taken measures to facilitate LPG importers and ensure a smooth supply of the product. Regulatory duties and import taxes on imported LPG were removed, and local LPG producers were made to pay petroleum levy to create a level playing field for importers. This policy also proved ineffective.

 

Published in The Express Tribune, August 1^st, 2023.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.