Liquefied Petroleum Gas (LPG) Distributors Association Chairman Irfan Khokhar has requested the Oil and Gas Regulatory Authority (Ogra) to follow proper procedure in conducting raids on LPG shops in Multan.
Irfan Khokhar said that he had sent a letter to Ogra and the provincial government authorities, including secretary industries, had issued instructions that raids on LPG shops would be conducted only on the report of Civil Defense Department, followed by the orders of a magistrate.
He said that the association would extend full cooperation to the law-enforcement agencies to check illegal LPG refilling, added that the association is also running its own campaign against the illegal activity. He, however, alleged that over 400 dealers or sub-dealers registered with the LPG association are being subjected to harassment by the police.
He further said that people have invested in the business and they are providing LPG to people at low price. The LPG Distributors Association Pakistan has demanded the government to withdraw recent hike in LPG prices which is poor people's fuel.
While addressing an urgent meeting of the association, LPG Distributors Association has said that local LPG industry is already struggling because of massive import of LPG, smuggling at vast scale and unbalanced policies while recent increase in LPG prices will further aggravate the situation.
The prices of LPG have been raised without keeping in view the ground realities. It seems that this initiative has been taken to benefit some particular elements. Low quality LPG is obviously being sold at cheaper rates while LPG marketing companies selling good quality local LPG are incurring heavy losses as presently imported LPG is about 20 percent cheaper than the locally produced LPG.
The LPG marketing companies selling locally produced LPG are not even recovering their basic cost and it is getting difficult for them to continue their business in face of non-supportive attitude of the government and local producers.
The increase in LPG prices on immediate basis will skyrocket the prices of LPG in the local market, thereby further squeezing the poor consumers who already find it impossible to buy LPG amid high inflation.
The decision of LPG price hike is made behind the closed doors without seeking any input from the LPG stakeholders, including the producers, and marketing companies are prepared to favor some particular elements, said the association.
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