Staff Report
LAHORE: High prices of Liquefied Petroleum Gas (LPG) in last six months has reduced its countrywide usage by 30 percent, leaving hundreds of distributors and sales point holders in lurch.
Both the LPG producers and the marketing companies have bagged a profit of Rs 6.09 billion in the last six months while challenging the authority of the Oil and Gas Regulatory Authority (OGRA) and the Monopoly Control Authority (MCA).
Mohammed Irfan Khokhar, chairman LPG Distributors Association Pakistan, in a press conference also dispelled the impression that LPG prices spiralled up owing to shortage.
The PPL, one of public sector LPG producer, was charging 90 percent profit besides government price of Rs 25, 000 per metric ton that escalated prices in the market, according to him.
The LPG producers were responsible for wrecking the LPG industry, he added.
Making a comparison with India, Mr Khokhar said the domestic cylinder in India was available at Rs 236 against Rs 700 in Pakistan in the recent past.
He urged the government to take notice of price hike by the LPG producers and force them to reduce per metric price to Rs 17, 000. A judicial inquiry is also sought against the fraudulent elements, selling local LPG as imported one. He also urged removal of all import level taxes to bring LPG import at zero rates.
Besides, he advocated for fixation of 15 percent LPG retail shop margin and a subsidy to domestic consumers like India.
According to him, the illegal demands of the LPG marketing companies have thrown many retailers out of business and there’s urgent need to protect them and their businesses.