LPG Distributors Association of Pakistan has demanded the government to immediately constitute price control committee under the Petroleum Ministry to oversee the LPG prices. Addressing a press conference here, chairman LPG Distributors Association Irfan Khokar said that LPG marketing companies had made cartel to make undue profits that had resulted in hike of LPG prices.
He said that Oil and Gas Regulatory Authority (Ogra) had the power to cancel the license of the LPG marketing companies that were involved in cartelization but the authority seemed to be helpless before that so called cartelization.
He demanded to form a price control committee with a mandate to determine the profit of dealers and LPG marketing companies. He said that LPG marketing companies had earned over Rs 82 billion profit from 2004-08 by involving in black-marketing. He said LPG producing companies were also involved in black-marketing and earned over Rs 18 billion undue profit from December 2006 to 2008.
He noted that due to black-marketing of LPG by marketing companies, domestic cylinder is available at the rate of Rs 1200 in the market and demanded to compel the alottees of local LPG production companies to import 100 percent LPG according to their quota. He requested the government to freeze the price of LPG at Rs 30,000 per ton for one year to facilitate the consumers who were being fleeced.
He revealed to media persons that 30 LPG marketing companies out of 76 have the LPG quota and other 46 companies rely on import. He said that allottees of local companies dominate the market and demanded to impose tax on the locally produced LPG to ensure uniformed rate between locally produced and imported LPG if the prices in these companies shoot up. He requested the government to make LPG part of Petroleum Policy to treat it like other products including petrol, diesel and natural gas. He called for removal of all taxes on the LPG import to make it feasible in market for the consumers.