LPG cylinders’ prices ‘Ogra’s negligence has caused artificial hike during Ramazan’

ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra)’s delay in action caused an artificial hike in the non-subsidised cooking LPG cylinders’ prices across the country during Ramazan.

According to the LPG Distribution Association, the LPG is not available anywhere in the country at the Ogra’s notified price for March. The LPG continues to be sold at Rs300 to Rs320 per kg and in the hilly area (Gilgit-Baltistan), while in the remote areas it is being sold at Rs400 per kg.

In a statement on Wednesday, the regulator recognised that it has taken notice of the market reports regarding a surge in LPG prices even though ample stocks of LPG molecules are sufficiently available in the country.

Apparently, the statement maintained an initial scrutiny of the matter reveals that hoarding of LPG stocks is the primary cause of the artificial increase in LPG prices and some unscrupulous elements are artificially restraining the stock from consumers’ approach and are selling the product beyond Ogra prescribed LPG prices.

In this context, the Ogra has communicated to the provincial chief secretaries to direct the local governments for taking immediate necessary action against illegal hoarders and ensure the sale of LPG on Ogra’s prescribed prices to the end consumers.

Further, the Ministry of Energy, Petroleum Division has also issued letters to the chief secretaries for appropriate actions.

Additionally, the Ogra’s enforcement teams are already in the field to monitor the stocks and ensure the sale of LPG at prescribed prices, it has been stated.

People in various parts of the country are facing load-shedding of natural gas in the holy month of Ramadan despite assurance from the government for an uninterrupted supply during Sehri and Iftari timings.

Almost half of LPG supplies in the country are supplied through imports and the residual by local production. There has been a pricing problem among imported LPG vs local one.

Unlike Pakistan, in India, weeks before the general elections, Prime Minister Narendra Modi announced a Rs100 per cylinder cut in LPG price to ease the financial burden on households. In India, prices vary from state to state depending on the incidence of local taxes. The reduction has been made possible because of the easing of international oil and gas prices against which domestic fuel rates are benchmarked.

According to the Ogra, the notified price of 11.8kg cylinder stands at Rs3030.25.

It means the official price per kg will be Rs256.78.

However, it is being sold for Rs300 per kg in the open market.

Copyright Business Recorder, 2024