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The Liquefied Petroleum Gas (LPG) marketing companies have raised the LPG price from Rs 5-10 per kg, Rs 60-120 per domestic cylinder and Rs 240-480 per commercial cylinder, saying that price of the commodity has also been increased in the international market.
The product price in the hilly areas including Murree, Muzaffarabad, Gilgit-Baltistan, Mansehra, Federally Administered Tribal Areas (Fata) and Balakot has been increased by Rs 10 per kg, while in plain areas including Karachi, Lahore, Faisalabad, Sargodha, Rawalpindi, Islamabad, Gujranwala, Gujrat, Rahimyar Khan, Multan, Attock Dera Ismail Khan and Peshawar has been jacked up by Rs 5 per kg.
After the current Rs 10 per kg increase in the LPG prices, the commodity would be sold in hilly areas like Gilgit-Baltistan, FATA, Balakot, Murree, Swat and Muzaffarabad at Rs 160 per kg against Rs 150 per kg, while domestic cylinder at Rs 1870 against Rs 1750.
In cities including Rawalpindi/Islamabad and Attock LPG would be sold at Rs 145 per kg against Rs 140 per kg, while domestic cylinder price has increased from Rs 1630 to Rs 1690. In Peshawar, Dera Ismail Khan, Kohat, Sukkur, Rahimyar Khan and Sadiqabad LPG prices are increased from Rs 130 per kg to Rs 135 per kg, while domestic cylinder price increased from Rs 1510 to Rs 1570.
In Gujranwala, Jhang, Sargodha, Sahiwal, Multan, Gujrat and Gujranwala would be sold at Rs 130 per kg against Rs 125 per kg, while in Karachi it would be available at Rs 115 per kg against Rs 110 per kg. While rejecting the current increase in the LPG prices, Muhammad Irfan Khokhar, Chairman All Pakistan LPG Distributors Association said that over the past six years the 'LPG Mafia' has manage to earn Rs 350 billion by fleecing the masses.
Khokhar added that local LPG production in 2004 stood at 1800 tons per day, which now has declined to 1200 tons per day, adding that as per Ogra licensing rules the LPG marketing companies are bound to import 20 percent of their allotted LPG quota. "There are 89 LPG marketing companies in the market, while a group of 25 companies have made a cartel and doing active business," he added.
The producers are supplying LPG to marketing companies at Rs 80,862 per ton, which shows that LPG prices is around Rs 81 per kg, while marketing companies are supplying the gas to the end consumers at Rs 140-150 per kg, which shows that they are earning about Rs 60-70 per kg.
He alleged the LPG marketing companies are creating an artificial shortage of the product so that they could justify the increase in LPG prices. Khokar said that if the relevant authorities did not take serious action against the LPG marketing companies, the companies would further increase the prices.

Copyright Business Recorder, 2011

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