According to notifications issued by the Oil and Gas Regulatory Authority, the consumer price for LPG has increased by Rs 7 per kg, while price increases of Rs 86 and Rs 329 were notified for domestic cylinders and commercial cylinders respectively.
LPG will now be available at Rs 133 per kg, while domestic cylinders and commercial cylinders would be available at Rs 1565 and Rs 6021 respectively, says Chairman and Founder of LPG Industries Association of Pakistan, Mr. Ifran Khokhar, who also happens to be the Chairman of LPG Distributors Association of Pakistan.
The price increases shall be effective as of today, August 2nd 2018.
Complaining about the inaction of the government on the matter, the LPG Distributors Association condemned this price increase, and characterized it as grave injustice to the poor citizens of the nation, who have no options but to bear the weight of imported prices as about three quarters of the local LPG production is sold at imported rates.
The association highlighted the fact that in the past four years, LPG production has gone up from 34,000 MT per month to about 75000 MT per month, an increase of about 54% over this time frame. However, despite the increased production, as a result of the shutdown of the Jamshoro Joint Venture Limited (JJVL), approximately seven to eight thousand tons have gone short in the market, the association said, leading to millions in losses for the national exchequer.
The associated suggested that consumer prices could be maintained at a 30% discount if LPG prices are kept according to the LPG policy 2016 provided the entire local production of LPG is distributed among all LPG marketing companies on a merit basis and subject to the mixing of 50% imported LPG. According to them, if this line of action is followed, consumers could be provided with domestic cylinders at a price of Rs 1000 instead of Rs 1565 at present.
They went on to say that the government’s promise to keep domestic cylinder prices at Rs. 895 in the LPG policy 2016 failed due to the significant price increases by local LPG producers who raised consumer LPG prices by Rs. 76/kg, Rs. 232.50 for domestic cylinder, and Rs. 895 for commercial in the last 6 months alone.
Irfan Khokhar appreciated OGRA for ending the unjustifiable Signature & Premium Bonuses and demanded the Ministry for Petroleum & Natural Resources to call an LPG Price Committee meeting on an urgent basis in order to provide the poor people of Pakistan with the much needed economic fuel.
LPG Distributors also demanded for a separate margin slot in OGRA price notifications and warned that the LPG Distributors Association Pakistan will have to go on a strike if local LPG Producers are not prevented from such price hiking.