Gas crisis 'LPG distributors fleecing people'

09 Dec, 2011

Liquefied Petroleum Gas (LPG) retail prices should not exceed Rs 120 per kilo but unfortunately there is no check on the prices being charged by the distributors, said spokesman of LPG Association Belal Jabbar. According to a press statement issued by LPGAP, LPG producers increased their prices on December 03, following an increase in Saudi Aramco Contract price. Oil marketing companies passed on the same increase to distributors.
"There are some elements within the distributors whose aim is to distort the facts and present false information to the public," said Jabbar. The LPG Association of Pakistan has urged the Oil & Gas Regulatory Authority (Ogra) to bring the distributors into a regulatory ambit and issue them licenses. However, Ogra has shown reluctance on the matter and preferred to hold LPG companies responsible for the actions of the distributors. He said LPG companies did not have policing powers and could not enforce prices. However, Ogra being the regulatory authority can and must do so, in order to protect the consumers from over charging of prices by distributors.

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