The Liquefied Petroleum Gas Association of Pakistan (LPGAP) on Tuesday clarified that the temporary upward fluctuation in the prices of the LPG was due to decrease/stoppage of the commodity from Iranian border because of law-and-order situation in Iraq and increase in CP price. Temporary decrease in local production, increase in demand is due to Ramazan and stocking of LPG by distributors.
After suffering two months of recession and selling LPG at gross loss, price correction was done by LPG marketing companies. Due to closure of CNG stations, demand of auto sector has also contributed to increase in prices. In a statement issued here, Chairman LPG Association of Pakistan Farooq Iftikhar said LPG was like any other commodity and, therefore, was susceptible to price variation with increased demand and reduced supply, as such it was incorrect to blame marketing companies for the increase.
He also said more profit was being made by the distributors and not the marketing companies who suffered heavy losses due to over supply during the last few months. The regulatory authority OGRA must also start registering major distributors and bring them under ambit of law as presently they operate without any fear of any regulation.
Farooq Iftikhar said LPGAP has already agreed with MNPR's proposal to bring the LPG industry under price regulation and it is up to the Ministry to approve the mechanism at the earliest to arrest this surge in price. LPGAP proposal also agrees with ministries solution of handling shortages during high season. LPGAP assures and stand by it commitment to the government to support its effort to keep LPG prices affordable for all and requests early implementation of the new policy to regulate end user price.
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