ISLAMABAD: Chairman Liquefied Petroleum Gas Distributors Association Pakistan (LPGDAP) Irfan Khokhar Thursday urged the Oil and Gas Regulatory Authority (OGRA) to take action against the LPG `mafia' for increasing the commodity price without any justification.
Addressing a news conference along with Punjab and Islamabad- based presidents of the association here, he said "LPG marketing companies are looting the consumers by selling locally produced LPG in the name of imported gas because its price has surged in the international market."
He said the marketing companies had increased the LPG price nine times in a period of around two months without any justification, adding that the government did not increase even a single penny in the price of locally produced LPG, which is Rs 33.50 per kilogram.
"LPG demand will increase in the upcoming winter season and we are afraid of the LPG shortfall which can lead to worst crisis in the country's history," he said.
Approximately, he said, there would be the need of 300,000 metric tons of the gas to meet demand of the commodity during the winter season from September to February.
During the season, the chairman said, demand of LPG increased and supply shrinked rapidly, adding "We need approximately 50,000 to 60,000 metric tons of gas per month to maintain the supply chain."
In last three years, he said overall supply and availability of LPG remained smooth across the country due to effective policies of the Pakistan Muslim League-Nawaz government.
He urged the government to facilitate LPG importers so that smooth supply of the gas could be ensured in the winter season across the country.
Answering a question, the chairman said the notified price of local LPG was Rs 33.50 per kg, while imported gas cost around Rs 66 per kg, which could escalate from Rs 200 to 300 per kg in the peak season, if appropriate action was not taken by OGRA.
"Presently, in Islamabad the LPG price is Rs 100 plus, while in other areas its rate is about to touch the Rs 100 figure," he remarked.
Khokhar revealed that around 500 factories in Gujranwala were involved in manufacturing substandard LPG cylinders, adding that the district administrated had so far sealed 11 such factories.
Answering a question, the chairman said he had conveyed all his concerns to Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi.
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