LPG Association of Pakistan has called for close co-ordination and interaction between the producers and marketing companies of Liquefied Petroleum Gas (LPG) to keep the prices at a level affordable to consumers in rural and northern areas of the country.
Chairman of the Association, Iqbal Z. Ahmed, in a statement issued here on Friday while reacting to reports of frequent changes in prices of LPG said that the price charged from the consumers by LPG marketing companies is directly linked to the rate charged by the producers from the marketing companies. Therefore, he said, LPG producers were responsible for rise in the prices and not the marketing and distribution companies.
Since January 01, 2004 LPG producers have made some 35 percent rise in the price by effecting five upward changes in the past seven months, he claimed. According to LPG rules, producers are required to notify price changes on a six monthly or quarterly basis but this fact is always ignored by the producers, he further said.
He added that despite submissions made to the oil & regulatory authority to this effect, changes in price continue to be made on the ground that LPG rate in the local market has to be brought to the level of the international sale price and it is dependent on international price patterns.
According to Iqbal Z. Ahmed, the LPG marketing companies maintain safety standards, ensure full filling of cylinders, account for depreciation and cylinder replacement, pay overheads and other expenses and try to keep a reasonable profit margin, which has been declining for many years because of the continuous price rises being implemented by the LPG producers.