The Oil and Gas Regulatory Authority (Ogra) has withdrawn its decision to register distributors of liquefied petroleum gas (LPG) across the country, saying that it would take all such decisions after taking all stakeholders on board. This was stated by Mansoor Mazaffar, Acting Chairman of Ogra here on Monday while addressing Third All Pakistan Convention of LPG Distributors Association.
The Ogra Chairman said that no LPG marketing company would be allowed to exploit the distributors and consumers, and added that the Authority would take all possible steps in protecting the consumers. According to the LPG distributors association, there are around 6 million consumers using LPG standardised cylinder, while millions of other people are using the fuel through decanting, as they can not afford the price of LPG cylinder. The domestic LPG cylinder is available at Rs 1450 per 11.8 kg in the country; while after decanting per kg price of LPG varies from Rs 120-135 in different cities and towns.
Muzffar said that the Authority would compel the LPG marketing companies to follow the directives along with other rules and regulations. He said that inspection teams would regularly visit the plants of marketing companies and if any company ignored the directives issued by the Authority it would be fined. He added that Ogra has directed the marketing companies to make available the sales invoice/gate pass on the company at printed format to differentiate the local and imported LPG.
The Authority on July 12 had advised the LPG marketing companies before dispatching the vehicles from storage and filling stations to LPG distributors clearly mentioning whether the consignment is imported or local. According to LPG distributors association, there is no uniform system for fixation of LPG prices and all companies are charging their own price.
Addressing the participants the LPG distributors, representatives from Balochistan, Khyber Pakhtunkhwa (KP), Punjab and Sindh urged the government to control anti-competitive activities of the LPG marketing companies, saying that the LPG marketing companies are overcharging the consumers and distributors. LPG distributors association representatives from across the country gathered here in connection with third all Pakistan LPG Distributors Association Annual Convention, which elected Muhammad Irfan Khokar as unopposed president of the association for another five years term.
Earlier, Ogra proposed registration fee of Rs 25,000 for each distributor. Through this fee Ogra plans to generate Rs 300 million. Ogra has fixed price of imported LPG at Rs 1450 per domestic cylinder of 11.8 kg, while it fixed locally produced LPG domestic gas cylinder price at Rs 1,239. In the market of twin cities of Rawalpindi/Islamabad LPG is available at Rs 135 per kg against Ogra's fixed price of Rs 105 per kg for locally produced LPG and Rs 123 per kg for imported LPG.
Pakistan's current domestic LPG production stands at 1,200 tons per day, which has reduced from 1,600 tons per day in 2006. The Authority fixed locally produced LPG price at Rs 105 per kg on July 12, and imported LPG price at Rs 123 per kg. But all LPG marketing companies are charging the consumers the price of imported LPG. Irfan said that there is a total 86 LPG marketing companies, majority of them owned by retired generals, politicians and bureaucrats. Only 13 marketing companies, out of 86, possess the licences to sell imported LPG.
According to official figures, total 6.3 million households, out of 25 million, are connected with the systems of Sui- Northern Gas Pipeline (SNGPL) Company and Sui-Southern Gas Company (SSGC) and they are using natural gas as fuel, while the rest of the population is relying on firewood, LPG, diesel, coal and other fuel sources.
In July, Ravi Cress Group imported 2,300 tons of LPG, while SHV Super Gas imported 1,800 tons of LPG. These companies have distributed imported gas to 13 marketing companies. Liquefied petroleum gas (LPG) marketing companies have also rejected proposed LPG policy, saying that under the proposed LPG policy all the 75 marketing companies will have to import 25 percent of their total sale, which is not logical. According to LPG marketing companies, consumption of LPG is reducing owing to its local price hike, and the condition to import 25 percent of the sale would further raise the prices.