Current LPG retail prices are well within the maximum consumer price range allowed by the Oil & Gas Regulatory Authority (Ogra) and any changes in the retail prices are a result of market demand and supply, said the LPG Association of Pakistan (LPGAP) in a statement on Monday.
"LPG marketing companies have been operating on negative margins since the beginning of March and even now companies are barely breaking even," said Fasih Ahmed, spokesman for LPGAP, the group of LPG marketing companies. "Even with the recent increases, LPG retail prices are far below the maximum consumer prices assessed by the government and Ogra," he said.
The current LPG Producer Price or the price at which LPG marketing companies purchase product is Rs 45,878/tonne or Rs 540/11.8kg, whereas the price at which LPG marketing companies sell product to their distributors is currently Rs 540/11.8kg cylinder in Karachi and Rs 560/11.8kg in the Punjab, Ahmed said.
"The public should be wary of misleading statements being issued on the topic by persons who either have no knowledge of the LPG sector or who were involved in the black marketing of the product last winter," Ahmed said, referring to recent reports.
"The LPG marketing companies are capital-intensive enterprises and are fully conscious of their responsibility to ensure the availability of affordable product throughout Pakistan," he said, adding that LPG is currently still cheaper than both petrol and diesel.