Sufficient LPG stock available, action against black marketeers needed: LPGDA

December 14, 2018: Liquefied Petroleum Gas Distributors Association (LPGDA) Chairman Irfan Khokhar on Friday categorically said the country had sufficient LPG stock to ensure smooth supply in peak winter season, but urged the government to take action against the ‘mafia’ involved in creating artificial shortages by black-marketing the commodity.

“Around 80 percent demand of LPG is met through local production and 20 percent from the import. Local LPG production quota holders are involved in hoarding and black-marketing to make a quick buck in the season,” he said.

He said LPG marketing companies and dealers were bound to sell the commodity at rates fixed by the Oil and Gas Regulatory Authority (OGRA), under which LPG would be sold at controlled price of Rs113 per kilogram and Rs1338.78 for domestic cylinder of 11.8 kg.

He alleged that some local LPG marketing companies and dealers had increased the price on their own to create artificial shortage, suggesting the OGRA to conduct audit of their accounts.

Answering a question, he said no doubt the LPG demand had substantially increased in the cold weather conditions but it did not mean that there was any shortage like situation as import of approximately 50,000 metric ton (mt) LPG was projected in the current month.

“As many as 25,000 mt LPG has been imported by December 14. This month’s total import will be almost double as compared to the month of November,” he said.

Khokhar appreciated the government for abolishing regulatory duty, reducing general sales tax on import of LPG and bringing down the commodity price by 50 percent in a short span of time.

“It is for the first time that rates of the LPG and LNG are almost same, rather LPG price is Rs 4,000 cheaper as compared to per drum of a furnace oil,” he added.

Irfan Khokhar claimed that the LPG is 60 per cent cheaper than petrol and diesel, while 15 percent inexpensive to Compressed Natural Gas.

(APP)

Posted on: 2018-12-14T16:34:00+05:00

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