The Oil and Gas Regulatory Authority (Ogra) has warned all the Liquefied Petroleum Gas (LPG) marketing companies to avoid overcharging, otherwise they would be facing cancellation of their license. Mansoor Mazaffar, Acting Chairman Ogra addressing a press conference on Wednesday said LPG companies are producing LGP at Rs 65,000 per ton, whereas the marketing companies were selling the commodity on much higher rates.
He said per kg LPG rate in accordance with Ogra's calculation should be around Rs 104-105, while the marketing companies are selling it between Rs 120-135 per kg. All the LPG marketing companies are being given a last chance to improve their supplies before Ogra takes stern measures as per rules and terms & conditions of the licence issued to these companies.
"Ogra has been attentively watching the vagaries of LPG marketing companies who are getting the product from the producers at a rate substantially lower than the CP, but shockingly selling cylinders at or more than international prices. Ogra thought that sanity may prevail in its licensees of LPG, but it has been noticed with concern that the fundamentals of the LPG demand/supply position has been deliberately glossed over whereas the country has passed through and is still passing through successive crisis."
The LPG marketing companies have also failed to provide any relief to the helpless consumers. A stage has now reached when it will no longer be tolerated that the licensees are getting richer by sheer exploitation of demand/supply dynamics, it said.