SATURDAY JULY 14: Petroleum ministry, Ogra to conduct joint raids: LPG firms violating fixed prices

16 Jul, 2012

ISLAMABA: The Ministry of Petroleum and Natural Resources on Thursday directed Oil and Gas Regulatory Authority (Ogra) to conduct raids on plants of Liquefied Petroleum Gas (LPG) companies violating prices fixed by the regulatory authority.
According to an official letter, the Ministry advised Ogra for joint action against such LPG marketing companies. On July 5, the Regulatory Authority issued a notification according to which LPG prices were reduced by Rs30 per kg.
The Authority fixed reasonable maximum consumer price for 100 percent locally produced LPG at Rs983 per 11.8 kg cylinder or Rs83.30 per kg. The reasonable maximum consumer price for 100 percent imported LPG was fixed at Rs1,136 per 11.8 kg cylinder or Rs96.27 per kg. The reasonable maximum consumer price for local and imported mix LGP was fixed at Rs1,020 per 11.8 kg cylinder or Rs86.4 per kg.
The Authority directed all LPG marketing companies and distributors to ensure notified prices. Ootherwise, it warned of action by relevant department of the regulatory body.
At present, LPG price vary from city to city and shop to shop. In Karachi, LPG is available at Rs110 per kg and in Gilgit and Muzaffarabad it is being sold at Rs140 per kg.
Moreover, the Authority also advised marketing companies to make available/issue sales invoice/gate pass on the company printed format, clearly mentioning whether the consignment's origin before dispatching vehicles from storage and filling plants.
The letter states that LPG marketing companies were not complying with Ogra's directives regarding LPG prices. Therefore, Member (Oil), Ogra, has formed a team comprising representatives of Ogra along with a representative of the Petroleum Ministry to visit filling plant sites of LPG marketing companies to verify the apprehensions of the Chairman.
"In view above, Asif Gul, Assistant Director, is hereby nominated to be part of Ogra's inspection team for the aforesaid purpose," the letter adds.
On the other hand, LPG marketing companies believe that Ogra had fixed LPG price without consulting stakeholders.

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