LPG prices up by 47 percent in three weeks

The Liquefied Petroleum Gas (LPG) has witnessed yet another increase of Rs 4 per kg in its price, soaring to Rs 50 per kg from Rs 46 per kg, with effect from Wednesday.
The LPG prices have witnessed an unprecedented increase in its prices since last month, surging by Rs 16 per kg or 47 percent in just three weeks, ie, from Rs 34 per kg to Rs 50 per kg.
LPG dealers have held both the producers and the marketing companies responsible for this price hike. According to LPG dealers, last month, the producers, including Pak-Arab Refinery Company (Parco), Pakistan Petroleum Limited (PPL) and Oil and Gas Development Company Limited (OGDCL) had increased well-head price of LPG by Rs 3,210 per metric tonne to Rs 20,200 per metric tonne from Rs 17,000 per metric tonne, which gave rise to its rate at retail level.
"But we held both the LPG producers and marketing companies equally responsible for the recent price hike, which has put an unbearable burden on those consumers, who are using this most popular and alternative fuel, LPG Dealers Association of Pakistan President Muhammad Irfan Khokhar told Business Recorder here on Wednesday.
He said the marketing companies have enhanced the prices three times in just 23 days, forcing the dealers to shift the burden on to the consumer.
According to the dealers, due to shortage of supply the demand has soared, which in turn has escalated the retail level price of the LPG. However, it is the responsibility of the marketing companies to bridge the gap between demand and supply by importing LPG, Irfan said.
"We are very much concerned over this unprecedented price hike and are going to convene a meeting of the dealers in a few days to discuss the situation," he said. The association, he added, in the meeting will also urge upon the government to remove federal excise duty and customs duty on import of LPG, so as to encourage the marketing companies for LPG import.
If the government did not take immediate steps, the LPG price might go beyond control, Irfan warned, adding that the existing rate of LPG in Karachi was Rs 65 per kg, which was likely to touch Rs 70 per kg mark, probably in a day or two. The situation is turning from worse to worst, therefore, the government must remove duties on LPG import to fill the gap between demand and supply, he added.