‘LPG price formula vulnerable to misuse’

Dealers may sell the product at higher than approved rates.

LAHORE: The formula for fixing liquified petroleum gas (LPG) price in the city will create confusion and provide an opportunity to the dealers to sell the product at higher than approved rates, said the All Pakistan LPG Distributors’ Association vice chairman, Attique Khan.

After meeting with District Coordination Officer (DCO) Sajjad Bhutta on Wednesday, he said that the DCO had asked them to sell local LPG at Rs87 per kilogramme (kg) while imported LPG should be sold for Rs100 per kg.

“There is no mechanism to check whether the LPG being sold is local or imported.

There is a chance that the sellers will deceive people and sell the product at Rs100 per kg,” Khan said. “No one can differentiate between local and imported LPG but the DCO insists, he can do so,” he added. The DCO was not available for comments despite repeated attempts.

The prices of LPG have risen sharply over the last six weeks. Despite a decline in the price in the international market, local companies have kept revising their prices.

During the month of Ramazan alone, the price of LPG was raised five times, reaching Rs120 per kg, said an official of LPG association.

The official, seeking anonymity, added that after the intervention of the Ministry of Petroleum, the prices had been lowered to Rs75-80 per kg. “However, the LPG industry cartel raised the prices again,” he said.

Published in The Express Tribune, September 16^th, 2010.