The Oil and Gas Regulatory Authority (Ogra) while taking serious notice of the overcharging of the Liquefied Petroleum Gas (LPG) by the retailers have directed them and LPG marketing companies to avoid exorbitant rates, otherwise, stern action will be taken against the violators. In a written communiqué to LPG marketing companies and retailers the regulatory body said "it is reported in the media that the retailers are selling LPG at the exorbitant rate of Rs 160-200 per kg". It is in reaction to a news item carried by the Business Recorder on November 18.
It is pertinent to mention here that producer's price of LPG for October and November 2013 are same whereas consumer prices of LPG for November 2013 have been increased without any justification, it added. You were advised vide OGRA's letter of even number dated 3.10.2013 that the company should build up ample LPG stocks during winter and ensure that your LPG distributors are not involved in overcharging LPG consumers particularly in winter whereas reports reveal that distributors are selling LPG at exorbitant rate.
It is a matter of grave concern for OGRA that despite the stability in producer price for November 2013, the LPG consumer prices in the market are increased by the LPG marketing companies on the back demand/supply in winter season, whereas the situation is not justified.
OGRA further directing the concerned quarters advised the LPG retailers and marketing companies to ensure that LPG consumers are not overcharged by LPG marketing companies and distributors in any case, particularly in ensuring winter months; otherwise appropriate action shall be taken against the company in accordance with the rules/law. According to Mohammad Irfan Khokar, Chairman All Pakistan LPG Distributors Association, local LPG production stands at 1,400 tons per day, while local LPG marketing companies are purchasing the commodity from producers at Rs 102,000 per ton including all taxes; LPG marketing companies are supplying the commodity to retailers at Rs 120,000 per ton.
He said he has highlighted the issue with highest OGRA authorities on November 11, 2013, adding that Mohammad Yasin, Executive Director OGRA LPG/LNG assured him that the authority will make all possible efforts in maintaining the LPG prices at affordable rates and no one will be allowed to overcharge the consumers. He said the authority should fix maximum LPG consumers prices and should constitute monitoring teams to warn the violators.
It has been observed in the twin cities that the retailers are selling LPG at Rs 160 per kg, which shows that LPG retailers are earning Rs 40 per kg, while marketing companies are charging Rs 16 per kg including transposition and other expenditure. Khokhar said in coming days LPG prices are likely to further increase due to intense winter and high demand. He said at present LPG in hilly areas including Murree, Muzafarabad, Gilgit-Baltsitan, Mansehra, FATA and Balakot is being sold at Rs 160-170 per kg against Rs 155 per kg and Rs 1,600 per domestic cylinder of 11.8 kg against Rs 1,450.