Marketing companies raise LPG prices

The Liquefied Petroleum Gas (LPG) marketing companies have increased the commodity prices by Rs 5 per kg, Rs 60 per domestic cylinder of 11.8-kg and Rs 240 per commercial cylinder. This was stated by Mohammad Irfan Khokhar, Chairman All Pakistan LPG Distribution Association while addressing a press conference Thursday. He said this was the fourth increase in LPG prices during past one month by marketing companies without the approval of Oil and Gas Regulatory Authority (OGRA).
Khokhar said the marketing companies are charging international commodity price from the poor consumers as Pakistan has not increased local LPG prices since 2015. International LPG price recently increased by $50 per ton from $308 per ton to $358 per ton while local prices stay unchanged. Giving details of local LPG production and the imported one, he said in 2014 total LPG import stood a little over 62,000 tons, while local production was 440,115 tons, in 2015, 245,678 tons of LPG was imported, while local production was 630,000 tons and within seven months of the current year total LPG import has reached 325,000 tons, while local production is 425,000 tons.
During past three years, due to low price the use of LPG witnessed an across the board increase, so keeping in mind the trend the government should allow LPG import up to 60,000 tons per month as in winter commodity usage increases by 45-50 percent, Khokhar added.
He said if up to 300,000 tons of LPG import is not allowed, local commodity prices may reach Rs 250 per kg from Rs 90 per kg due to supply/demand situation. LPG is the cheapest fuel costing Rs 32-25 per litre against Rs 47 of CNG and Rs 66 of Petrol for households and auto sector which has become the largest consumer in the country at present.
He also complained that Karachi LPG storage terminal EVTL & SSGC have increased storage charges from $25 per ton to $32 per ton, which also resulted in increase of Rs 6 per kg of the commodity. He said in other countries, maximum storage charges are $10 per ton, so the authorities need to reduce taxes on LPG and minimise storage charges so that the consumers can get maximum benefits.