The City District Government of Lahore (CDGL) and the LPG Association of Pakistan (LPGAP), a grouping of all LPG marketing companies, have redoubled their joint efforts against LPG distributors and retailers, involved in black marketing the product.
"We are grateful to the city government for their efforts in bringing relief to consumers," said LPGAP spokesman Fasih Ahmed on Friday. "We have asked them to increase fines from Rs 2,000 to a minimum of Rs 15,000 since the LPG distributors and retailers are earning profits in excess of Rs 80,000 per tonne, which is more than the combined margins of LPG producers and LPG marketing companies," he said.
Ahmed said the official and LPGAP inspection teams were conducting spot checks in the market to expose and punish LPG distributors and decanters, making abnormally high profit through black marketing.
He said his association had received 400 complaints and acted against 100. "The volume of complaints shows just how vast the LPG distributors' mafia spreads," Ahmed added.
He said there was a higher demand in the country because of winter and that 2,500 tonnes of the product had already been imported and another 2,500 tonnes was on its way in a month.
"The press and the public must not be fooled by some so-called spokesmen, hiding their dirty deeds through lies and fabrications. The demand is not as high as to justify retail prices of between Rs 95-130 per kilogram that are currently being charged in Lahore," Ahmed said.
"The end-consumer prices must not be more than Rs 63-65 per kilogram under any circumstances," he added.
Ahmed claimed that the LPG distributors were exploiting the Lahore suicide attack on Thursday to continue selling the product at prices higher than those prescribed by the LPG marketing companies and the Oil and Gas Regulatory Authority (Ogra).
"Expectedly, the LPG distributors are now exploiting the tragedy of January 10 to continue black marketing the product throughout Pakistan, especially in the Punjab," he said. "This is unfortunate, but true."
He acknowledged that some LPG marketing companies were refusing to comply with the Ogra directive to maintain reasonable prices. "Up to 99 percent of the responsibility for high prices rests with the distributors and no one else," he said.
He said radio and television advertisements, in addition to recurring print advertisements, would begin this week to help raise the public awareness about the actual LPG prices.
He praised the crackdown on the LPG distributors, hoarding the product. "One of our member companies has permanently cancelled the agencies of nine distributors in Lahore, other companies should follow suit," he said. "We appeal to the public to inform the police and press, if they are charged more than Rs 63-65 per kilogram anywhere in Pakistan," he said.