LPG overcharging costs Pakistani consumers more than Rs1.4b five days

LAHORE – Pakistanis are being forced to pay exorbitant prices for liquefied petroleum gas (LPG), with consumers allegedly paying more than Rs1.4 billion above the government-notified rate in just five days, despite the presence of the Oil and Gas Regulatory Authority (OGRA) and other regulatory bodies.

According to Irfan Khokhar, chairman of the LPG Distributors Association, Pakistan’s daily LPG consumption has risen from between 60,000 and 65,000 kilogrammes to around 70,000 kilogrammes due to changing weather conditions.

He said OGRA had fixed the LPG price at Rs280 per kilogramme, but the commodity was being sold at rates ranging from Rs600 to more than Rs625 per kilogramme.

As a result, consumers are paying approximately Rs320 extra per kilogramme. Based on the prevailing consumption levels and price difference, the public has paid more than Rs1.4 billion in excess charges over the past five days, Khokhar said, alleging that the additional money had gone into the pockets of the LPG mafia.

Questions Raised Over OGRA’s Enforcement

Despite the reported overcharging, LPG sellers have allegedly continued to set prices at their discretion for five consecutive days, while OGRA has yet to take action against any LPG plant operators, according to the report.

Sources within OGRA said meetings had been held over the past two days to determine which authority was responsible for taking action against those violating the notified prices.

The sources said OGRA was authorised to act against LPG marketing companies and plant operators. However, no action had reportedly been taken against any plant so far.

Meanwhile, the Punjab Enforcement and Regulatory Authority (PERA) has taken action against more than 10 shopkeepers in Lahore and other parts of Punjab.

Shopkeepers have questioned why they are being penalised when they themselves are purchasing LPG at inflated rates.

“We are being supplied LPG by the mafia at Rs550 per kilogramme. How can we sell it for Rs280?” some traders said, adding that enforcement teams were confiscating their gas-filling equipment and imposing additional fines.

The traders said they were facing mounting difficulties and might be forced to shut down their businesses if the situation continued.

Importers Blame Border Closure and Transportation Costs

Sheikh Mukarram, president of the LPG Importers Association, attributed the price surge to the closure of the Taftan border, which he said had disrupted supplies and created a shortage in the market.

He also criticised OGRA’s pricing notification, arguing that the transportation charges used in the calculation were outdated and based on rates from 2010.

According to Mukarram, transporting an LPG tanker costs between Rs50,000 and Rs60,000, but OGRA has failed to revise the relevant transportation rates.

He said the association had repeatedly raised the issue with OGRA’s chairman and other senior officials, but no satisfactory response had been received.

Mukarram warned that businesses could face serious difficulties if the issue remained unresolved, adding that shutting down operations could push the situation further out of control.

Industry Calls for Government Intervention

Khokhar said approximately 70 per cent of Pakistan’s LPG requirements were met through imports, while the remaining 30 per cent came from domestic production.

He urged the government to intervene immediately and take control of the situation to ensure that LPG was available to consumers at affordable prices.

The industry representatives called for effective price enforcement, a review of transportation costs and measures to address supply shortages to protect consumers from further price increases.