AIRLINK 212.82 Increased By ▲ 3.27 (1.56%)
BOP 10.25 Decreased By ▼ -0.21 (-2.01%)
CNERGY 7.00 Decreased By ▼ -0.35 (-4.76%)
FCCL 33.47 Decreased By ▼ -0.92 (-2.68%)
FFL 17.64 Decreased By ▼ -0.41 (-2.27%)
FLYNG 21.82 Decreased By ▼ -1.10 (-4.8%)
HUBC 129.11 Decreased By ▼ -3.38 (-2.55%)
HUMNL 13.86 Decreased By ▼ -0.28 (-1.98%)
KEL 4.86 Decreased By ▼ -0.17 (-3.38%)
KOSM 6.93 Decreased By ▼ -0.14 (-1.98%)
MLCF 43.63 Decreased By ▼ -1.57 (-3.47%)
OGDC 212.95 Decreased By ▼ -5.43 (-2.49%)
PACE 7.22 Decreased By ▼ -0.36 (-4.75%)
PAEL 41.17 Decreased By ▼ -0.53 (-1.27%)
PIAHCLA 16.83 Decreased By ▼ -0.47 (-2.72%)
PIBTL 8.63 Increased By ▲ 0.08 (0.94%)
POWERPS 12.50 No Change ▼ 0.00 (0%)
PPL 183.03 Decreased By ▼ -6.00 (-3.17%)
PRL 39.63 Decreased By ▼ -2.70 (-6.38%)
PTC 24.73 Decreased By ▼ -0.44 (-1.75%)
SEARL 98.01 Decreased By ▼ -5.95 (-5.72%)
SILK 1.01 Decreased By ▼ -0.02 (-1.94%)
SSGC 41.73 Increased By ▲ 2.49 (6.35%)
SYM 18.86 Decreased By ▼ -0.30 (-1.57%)
TELE 9.00 Decreased By ▼ -0.24 (-2.6%)
TPLP 12.40 Decreased By ▼ -0.70 (-5.34%)
TRG 65.68 Decreased By ▼ -3.50 (-5.06%)
WAVESAPP 10.98 Increased By ▲ 0.26 (2.43%)
WTL 1.79 Increased By ▲ 0.08 (4.68%)
YOUW 4.03 Decreased By ▼ -0.11 (-2.66%)
BR100 11,866 Decreased By -213.1 (-1.76%)
BR30 35,697 Decreased By -905.3 (-2.47%)
KSE100 114,148 Decreased By -1904.2 (-1.64%)
KSE30 35,952 Decreased By -625.5 (-1.71%)

The sudden move of Pakistan Petroleum Limited (PPL) demanding 70 per cent of the gross margin from LPG marketing companies is feared to add further to the already sky-rocketing prices of this cheaper public utility.
The commodity is mostly used in the areas where Sui gas is not available, especially in AJK and northern areas. According to LPG marketing companies, PPL was demanding this 70 per cent out of the gross margin from them over and above the price the producer was already getting from the marketing companies. This move would put an unbearable burden on the marketing companies and probably it would be impossible for them to meet their cost with the remaining 30 per cent margin. And ultimately the marketing companies would be forced to pass on the burden to the poor consumers, who were already facing hardships due to hike in essential items' prices.
At present, the purchase price of a LPG company for an 11.8-kg domestic cylinder comes to around Rs 271 ex-producers' premises; the sale price ex-marketing company plant is Rs 370. The gross margin including GST is Rs 100. PPL reportedly wants 70 per cent out of this as profit over and above the price of product they have already receiving from the marketing companies, which is according to the effected companies, unfair and unjustified and against none of their investment. PPL has decided to sell share of its gas from Adhi field through open bidding, which it has named 'profit-sharing formula.'
In its recent move, PPL has discontinued supply to three marketing companies from its Adhi field, even though other joint venture partners, including the major share holders in the field - OGDC, has decided to continue supply in accordance with its old agreement. OGDC has also conveyed to PPL in black and white that it would continue supply to the marketing companies without any change in already agreed terms and conditions.
It is pertinent to mention here that one of the three companies receiving gas from Adhi field, under an agreement with the UNDP, is supplying gas and gas cylinders to all tent villages established in AJK for earthquake victims.

Copyright Business Recorder, 2006

Comments

Comments are closed.