Consumers in Pakistan have paid more than Rs1.4 billion above the official rate for liquefied petroleum gas (LPG) in just five days, as the fuel sells at between Rs600 and Rs625 per kilogram against the Oil and Gas Regulatory Authority (OGRA) price of Rs280.
LPG Distributors Association Chairman Irfan Khokhar said buyers are paying Rs320 more per kilogram than the notified rate. He said daily consumption stands at 60,000 to 65,000 kilograms and has risen to 70,000 kilograms because of the change in weather. According to his calculation, the overcharging has moved more than Rs1.4 billion from consumers to sellers in five days.
OGRA has not taken action against any LPG plant or marketing company during this period. Sources at the authority said meetings over the past two days have focused on which body should initiate action. OGRA is empowered to act only against LPG marketing companies and plant operators. In Punjab, including Lahore, the provincial Para Force has taken action against more than 10 shopkeepers.
Shopkeepers said they are being supplied LPG at Rs550 per kilogram and cannot sell it at Rs280. They said enforcement teams confiscate their gas-filling equipment and impose fines, and that many are considering closing their businesses.
LPG Importers Association President Sheikh Mukarram attributed the price increase to a shortage caused by the closure of the Taftan border. bowser is between Rs50,000 and Rs60,000.
LPG Importers Association President Sheikh Mukarram attributed the price increase to a shortage caused by the closure of the Taftan border. He said the notification was flawed because it calculated transportation costs based on 2010 rates, while the actual freight cost for an LPG bowser ranged from Rs50,000 to Rs60,000.
He said the association has repeatedly informed OGRA chairman and other senior officials without response, and warned that a shutdown of operations would worsen the situation. Khokhar said 70 percent of the LPG is imported and 30 percent is produced domestically.