Raise in LPG cylinder price attributed to artificial shortage

The price of 11-kg domestic cylinder of liquefied petroleum gas (LPG) has reached around Rs 1,800 after the LPG mafia created an artificial shortage.
In the twin cities, a gas cylinder is being sold around Rs 1,800 while one kilogram gas is being sold from Rs 150 to Rs 170 in different localities of the federal capital.
For the month of January, the Oil and Gas Regulatory Authority (OGRA) increased the prices of the liquefied petroleum gas. The OGRA increased the price of LPG by Rs 2 per kg. The price of a domestic cylinder was fixed at Rs 1,361 for January.
The prices of LPG, coal and wood have gone up because the low to zero pressure of natural gas has forced many people to turn to alternate fuel sources to cook meal and warm up themselves owing to the cold weather in the country.
However, the vendors are selling gas cylinders at exorbitant price. The LPG sellers in twin cities depend on gas companies, located at Tarnol, including City Gas, Ravi Gas and Win Gas. The legal status of these local plants is not clear.
A distributor termed increase in LPG prices a failure of Petroleum Division, as it always fails to control the LPG prices right under its nose. It is the incompetence of the government that LPG prices fluctuate too much and consumers and sellers both suffer throughout the winter months, he added.
The LPG, known as poor man's fuel, becomes fuel of masses in winter owing to shortage of natural gas. The consumers in other parts of the country also complained about gas shortage and overcharging.
Meanwhile, numerous complaints of overcharging have been received by Oil and Gas Regulatory Authority (OGRA) and district management has started fining the sellers.
The government after long deliberations with industry reduced the taxes on LPG, bringing down the prices to a historic low. Finance Minister Asad Umer, in his recent speech proudly mentioned how he reduced taxes and brought the prices in the reach of general public.
The government had lowered the official LPG prices from Rs 1,673 in October to Rs 1339 in December. But the excitement was short lived, as just after a few days, the LPG mafia with connivance of the regulator increased the prices to the previous level.