LPG prices may go down by Rs 17.50 per kg

The prices of Liquefied Petroleum Gas (LPG) are likely to be reduced by Rs 17.50 per kg - Rs 262 per domestic cylinder of 15-kg and Rs 795 per commercial cylinder - after the commodity price registered a massive reduction in the international market. According to All Pakistan LPG Distributors Association, prices of the commodity in international market first time reached Rs 61,000 per ton, which is Rs 5,000 lower as compared to the local producers' price of Rs 66,100 per ton.
Liquefied Petroleum Gas is mainly used as an alternative fuel for cooking and heating in rural, urban areas following serious gas shortage. Moreover, it is also being used in rickshaws as a replacement of petrol and CNG. It has been observed by Business Recorder that dealers and distributors of LPG, while ignoring the directions of Oil and Gas Regulatory Authority (Ogra), are fleecing consumers by selling the commodity at Rs 160 to 170 per kg against Rs 120-130 per kg in most parts of the country.
During a visit to different LPG outlet in the twin cities of Rawalpindi/Islamabad, BR came to know that almost all the retailers are overcharging the consumers by Rs 30-40 per kg. In hilly areas including Murree, Muzaffarabad, Gilgit-Baltistan, Mansehra, FATA and Balakot the commodity is selling at Rs 180-200 per kg, which indicates that the LPG marketing companies are operating in the areas and distributors are exploiting consumers by overcharging them by Rs 40-60 per kg. Local production stands at 1,400 tons per day and local LPG marketing companies are purchasing the commodity from producers at Rs 104,000 per ton including all taxes, while LPG marketing companies are supplying the commodity to retailers at Rs 120,000 per ton, whereas retailers are selling it at around Rs 160,000 to Rs 170,000 per ton. This shows that LPG retailers are earning Rs 40 to Rs 50 on the sale of per kg, while marketing companies are charging Rs 16 per kg including transposition and expenditures.
Mohammad Irfan Khokhar, Chairman All Pakistan LPG Distributors Association, said that in coming days, the commodity price would further reduce. He said that the expected reduction in LPG price will bring the commodity rate to Rs 130 per kg in hilly areas including Murree, Muzaffarabad, Gilgit-Baltistan, Mansehra, FATA and Balakot where it would be sold at Rs 140 per kg against Rs 155 per kg. Similarly, the notified LPG price for the plains including Karachi, Lahore, Faisalabad, Sargodha, Rawalpindi, Islamabad, Gujranwala, Gujrat, Rahimyar Khan, Multan, Attock Dera Ismail Khan and Peshawar has been set at Rs 115 per kg against Rs 130 per kg.