By Saad Hasan
KARACHI: As much as the sudden surge in Liquefied Petroleum Gas (LPG) cost had bewildered the consumers, steep decline in its price, days after retailers threatened to observe strike, has left people wondering about working of the price mechanism.
LPG, widely used by commercial transporters, was selling between Rs55-58 per kg at retail outlets on Saturday, consumers and retailers told The News and said price had started coming down following the meeting of retailers and wholesale distributors on May 20.
The gas had touched a price level of Rs70-75 per kg earlier this month on high demand and short supply. However, prices have taken a deep dive in the last four days.
“Government should fix LPG price for a specific period of time,” Malik Awan of All Sindh LPG Dukhandar (shopkeepers) Association said. He said deregulation has left consumers at mercy of marketing companies.
The highly inflammable fuel - LPG -is being used in auto rickshaws and taxis without any proper framework of guidelines and safety precautions. Oil and Gas Regulatory Authority (OGRA) is yet to introduce a regulatory framework in this regard.
Awan said marketing companies were selling 11.8 Kg LPG cylinder at prices ranging between Rs475 to Rs600. “We have given a May 30 deadline to marketing companies and asked them to cut prices,” he said, adding that LPG may be available at Rs51-52 from next month.
The recent escalation in LPG price had also provided an opportunity for transporters to increase traveling fares.
Rehmat Gul, a rickshaw driver, said he had no idea why fuel prices have fluctuated in the last weeks. “They (retailers) don’t show us any price list.”