Distributors want Ogra and ministry to monitor LPG prices

The Liquid Petroleum Gas Distributors Association Pakistan (LPGDAP) has asked the government to ensure monitoring of LPG prices by Ogra and the petroleum ministry to check undue increase in gas prices such as the one introduced by LPG marketing companies during last two months.
In a press statement issued here on Sunday, FPCCI chairman zonal committee on LPG and LPGDAP office-bearer Muhammad Irfan Khokhar said that LPG marketing companies have increased the per kg price of LPG by Rs 14.50 from Rs 48 to Rs 62, due to which the price of domestic cylinder has risen from Rs 505 to Rs 675.
"We apprehend the price will go up to Rs 102 per kg if this trend was not checked immediately," he added. He said that at present the LPG producers were selling the gas at Rs 40,000 to Rs 41,000 per metric ton. He said that LPG marketing companies kept rising the prices of LPG despite the fact that producers has not raised it for last seven months.
He alleged that local LPG producers have maintained stocks and then claims regarding shortage of gas by 400 tonnes per day were heard. Irfan Khokhar claimed that LPG producers earned an undue profit of Rs 5.59 billion by not reducing the price during last seven months despite the fact that the prices were de-linked from international market on November 30, 2007.
He said that average international price of LPG at present ranges between Rs 85,000 and Rs 89,000 per metric ton. He alleged that cartels have been formed to sell the local LPG at the import price in future. It would enhance per kg price of LPG up to Rs 102 and domestic cylinder from existing Rs 675 to Rs 1,200 per cylinder which will discourage the use of LPG among the people, he added.
Irfan Khokhar appealed to the government to adopt measures to convert Pakistan into an LPG zone that it was environment-friendly fuel. He stressed that per metric ton price of LPG be brought back to the level of Rs 25,000 so that ordinary consumers can get it at Rs 40-45 per kg. The LPG can serve as an alternative fuel amid increase in prices of petrol and CNG provided efforts are made to keep its prices under control, he suggested.