The Oil and Gas Regulatory Authority (Ogra) has taken stern action against the marketing companies for artificial increase in the prices of Liquefied Petroleum Gas (LPG) and has directed the companies to publish their respective price for convenience of the general public.
The LPG marketing companies during past 10 days have been increasing the commodity prices taking them to Rs 100 per kg across the country. The commodity before December 15, 2014 was available at Rs 100 per kg in Karachi while Rs 140 per kg in Gilgit-Baltistan and other hilly areas including Azad Kashmir, which is now has reached Rs 150 per Kg in Karachi and Rs 250 per kg in northern areas and Azad Kashmir.
The representatives of the LPG marketing companies briefed the meeting that sudden increase in the demand typical of the winter season was exploited by certain profiteers. The Authority has warned the LPG marketing companies that strict action would be taken against the defaulting company or its distributors. Repeated violation could face maximum punishment that amounts to revocation of license of a marketing company.
The Authority has already fined 17 LPG marketing companies and their distributors involved in unfair practices with regards to prices. The Authority has directed the licensed LPG marketing companies of establishing additional sale-points or increase the number certified distributors in order to facilitate the end-users. OGRA has also required the companies to adhere to their license conditions and make their dealers and distributors to follow the procedures and price notifications.
A meeting urgently convened at the Authority office here decided to launch a comprehensive campaign against decanting of the LPG which is an illegal business. The Authority has asked both the LPG companies and the local administration to go against the decanting in collaboration.
A spokesman of the Authority said that certain inspection teams were still out in the field that could pay any surprise visit to some LPG marketing companies or its distributors whether a complaint or otherwise. To a question the spokesperson said OGRA cannot determine the price of the LPG as it is the deregulated business, but the companies are supposed to notify their respective reasonable price and distributors are supposed to follow it strictly. Overcharging could cost a distributor to lose dealership of a company.
According to Mohammad Irfan Khokhar, Chairman All Pakistan LPG Distributors Association the LPG marketing companies within past 10 days have increased the commodity prices four times saying that the marketing companies started increasing commodity prices from Saturday December 13, 2014.
On December 13 the commodity prices were increased by Rs 20 per kg, Rs 240 per domestic cylinder and Rs 1,000 per commercial cylinder without any notification by the government, on December 15 these companies further increased the commodity prices by Rs 5 per kg, Rs 60 per domestic cylinder of 11.8 kg and Rs 240 per commercial cylinder of 45 kg without the approval of Oil and Gas Regulatory Authority (OGRA) and on December 23 the marketing companies increased the prices by up to Rs 50 per kg, which takes the commodity prices in the hilly areas to Rs 250 per kg level after three years, Khokhar said.
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