Third increase in a month: LPG prices raised by Rs 10-15 per kg

The liquefied Petroleum gas (LPG) marketing companies have raised the LPG price by Rs 10-15 per kg, Rs 120-170 per domestic cylinder, and Rs 480-680 per commercial cylinder, saying that prices have increased in the international market. It is the third increase in the LPG price within a month. The marketing companies on December 7, 2011 had increased LPG prices by Rs 5 per kg, Rs 60 per domestic cylinder and Rs 220 per commercial cylinder.
Again, on December 29, LPG prices were increased by Rs 5-10 per kg. The new increase in prices has taken the LPG price to Rs 175 per kg, which is all time high in the country. It needs mention that the Oil and Gas Regulatory Authority (Ogra) is responsible to fix LPG prices, but it has not issued any notification in this connection.
The product price in hilly areas--Murree, Muzafarabad, Gilgit-Baltsitan (GB), Mansehra, Federally Administrative Tribal Areas (FATA) and Balakot--has been increased by Rs 15 per kg, while in plains of Karachi, Lahore, Faisalabad, Sargodha, Rawalpindi, Islamabad, Gujranwala, Gujrat, Rahimyar Khan, Multan, Attock Dera Ismail Khan and Peshawar it has been jacked by Rs 10 per kg.
After the current Rs 15 per kg increase in the LPG prices, the product would be sold in hilly areas like Gilgit-Baltistan, FATA, Balakot, Murree, Swat and Muzaffarabad at Rs 175 per kg, against Rs 160 per kg, and domestic cylinder at Rs 2050 against Rs 1870. In cities Rawalpindi/Islamabad and Attock LPG would be sold at Rs 155 per kg against Rs 145 per kg, while domestic cylinder price has increased from Rs 1690 to Rs 1810.
In Peshawar, Dera Ismail Khan, Kohat, Sukhar, and Sadiqabad LPG prices are increased from Rs 135 per kg to Rs 145 per kg, while domestic cylinder price increased from Rs 1570 to Rs 1690. In Gugranwala, Jhang, Sargodha, Sahiwal, Multan, and Gujrat at Rs 140 per kg against Rs 130 per kg, while in Karachi it would be available at Rs 125 per kg against Rs 115 per kg.
Rejecting the current increase in the LPG prices, Muhammad Irfan Khokhar, Chairman of All Pakistan LPG Distributors Association, said that over the past six years the 'LPG mafia' has managed to earn Rs 350 billion by fleecing the masses. He accused the marketing companies of overcharging the poor consumers by Rs 200 on domestic cylinder and Rs 800 on commercial cylinder.
He said that local LPG production in 2004 stood at 1800 tons per day, which now it has declined to 1200 tons per day, adding that as per Ogra licensing rules the LPG marketing companies are bound to import 20 percent of their allotted LPG quota. "There are 89 LPG marketing companies, while a group of 25 companies has made a cartel and doing active business.
The producers are supplying LPG to marketing companies at Rs 80,862 per ton, which shows that LPG price is around Rs 81 per kg, while marketing companies are supplying the gas to the end consumers at Rs 140-150 per kg, which shows that they are earning about Rs 60-70 per kg.
He alleged that LPG marketing companies are creating artificial shortage of the product in the country, so that they could justify the increase in LPG prices. Khokar said that if the relevant authorities did not take serious action against the LPG marketing companies, these companies are all set to further increase the prices.