LPG industry to observe strike on April 11

Liquefied Petroleum Gas (LPG) Industries Association of Pakistan has announced to go on strike on April 11 in a protest against less profit margin and high transportation cost of the commodity.

In a statement, the LPG Industries Association of Pakistan announced strike on April 11 in the AJ&K, the G-B, tribal areas, Hazara Division against less profit margin, and high transportation cost.

The LPG Industries Association urged the Oil and Gas Regulatory Authority (OGRA) to separately announce the LPG consumer price for Gilgit-Baltistan (GB), Azad Jammu and Kashmir (AJ&K) and for other northern areas.

The LPG Industries Association of Pakistan proposed that local government and deputy commissioners should set up freight transportation cost with coordination of the LPG Distributors Association keeping in view the OGRA LPG consumers price every month.

Irfan Khokhar said the LPG played a vital role in household usage in northern areas of GB and the AJ&K as weather usually remains cold. He said that in Bagh and Battagram distributors had already closed their outlets, while the rest of the AJ&K, the GB and northern areas, distributors were planning to go on strike within the next couple of days.

He said on the LPG cylinder of 11.8kg the transportation related cost to the hilly area was around Rs350 to Rs400, which made it expensive in these areas, while the profit margin of the distributors decreases.

On the other hand, the district administration is trying to force the distributors to sell the LPG at lower price, which is not possible, he said. He said, while determining the LPG price, the OGRA determines the marketing and distribution margin under the same column, which should be changed. He said that the OGRA should separately mention the marketing and distribution margin.

The association recommends that the OGRA must separately announce the LPG consumer price for Gilgit-Baltistan, the AJ&K and for other northern areas.

Further, the OGRA should pass instructions to the LPG marketing companies to deliver supply to the LPG distributors in Gilgit-Baltistan and in Azad Jammu and Kashmir or recommend local government, the deputy commissioners to set up freight (transportation cost) with coordination of the LPG Distributors Association keeping in view the OGRA LPG consumer price every month.