Consumers in Pakistan have reportedly paid more than Rs. 1.4 billion extra for liquefied petroleum gas (LPG) in just five days, as market prices climbed to more than double the official rate, according to the LPG Distributors Association.
The association has accused regulators of failing to stop the overcharging despite repeated complaints.
Irfan Khokhar, chairman of the LPG Distributors Association, said the Oil and Gas Regulatory Authority (OGRA) had set the LPG price at Rs. 280 per kilogram, but consumers were being charged between Rs. 600 and Rs. 625 per kilogram.
He said buyers were paying around Rs. 320 more per kilogram than the notified price.
Khokhar said daily LPG consumption had risen from around 60,000 to 65,000 kilograms to approximately 70,000 kilograms as the weather changed.
Based on the higher consumption and price difference, he estimated that consumers had paid more than Rs. 1.4 billion above the official rate over five days.
OGRA Faces Questions Over Price Enforcement
According to the report, LPG continued to be sold above the notified price for five days without action against plant operators. Sources within OGRA said officials had spent two days discussing which authority should take enforcement action.
OGRA is authorized to act against LPG marketing companies and plant operators, but no plant had reportedly faced action at the time of publication.
In Punjab, including Lahore, the provincial enforcement force had taken action against more than 10 shopkeepers. Some retailers said they were buying LPG at around Rs. 550 per kilogram and could not sell it at Rs. 280 without incurring losses.
They complained that enforcement teams were confiscating their gas filling equipment and imposing fines, leaving some considering closing their businesses.
Importers Blame Shortage and Transport Costs
Sheikh Mukarram, president of the LPG Importers Association, attributed the price surge partly to the closure of the Taftan border, which he said had caused a shortage.
He also criticized OGRA’s transport cost calculations, arguing that the regulator was using transportation rates based on 2010 figures despite LPG tanker transport costing between Rs. 50,000 and Rs. 60,000.
Mukarram said the association had repeatedly informed OGRA Chairman and other senior officials about the issues but had received no meaningful response. He warned that businesses could face pressure to shut down if the problems remained unresolved.
Khokhar said around 70 percent of Pakistan’s LPG was imported, while domestic production accounted for the remaining 30 percent. He called on the government to take direct control of the situation to ensure consumers could obtain LPG at affordable prices.
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