Ogra increases LPG prices

The Oil and Gas Regulatory Authority (Ogra) has increased the price of liquefied petroleum gas (LPG) by Rs 108 per domestic cylinder of 11.8 kg, or over Rs 9 per kg. The Authority issued a notification in this regard here on Friday.
It has fixed locally produced LPG price at Rs 1348 per domestic cylinder of 11.8 kg, or Rs 114 per kg; imported LPG price is fixed at Rs 1487 per domestic cylinder of 11.8 kg or Rs 126 per kg; and the price of local and imported mixed LPG is fixed at Rs 1376 per domestic cylinder of 11.8 kg, or Rs 117 per kg.
The Authority has allowed the marketing companies to charge additional Rs 30 per domestic cylinder of 11.8 kg in Gilgit-Baltistan and Azad Jummu and Kashmir due to higher transportation cost. The Authority has advised the enforcement department to closely monitor LPG consumer prices across the country until further announcement.
LPG price in international market has increased by $27 per ton, which last month was being sold at $843 and now is available at $870 per ton. Local producers like JJVl and Parco have increased the LPG price from Rs 83,000 per ton to Rs 86516 per ton, while the government run Oil and Gas Development Company Limited (OGDC) is supplying LPG at Rs 86,567 per ton.
The Authority had fixed locally produced LPG prices at Rs 105 per kg on July 12; it had also fixed imported LPG price at Rs 123 per kg. Ogra fixed price of imported LPG at Rs 1450 per domestic cylinder of 11.8 kg, while it fixed locally produced LPG domestic gas cylinder price at Rs 1,239.
Terming the current increase in LPG price by the Authority a Ramazan gift for the poor people, Muhammad Irfan Khokar, Chairman of LPG Distributors Association Pakistan said that due to ineffective LPG policy of the government, prices are increased. He said that Ogra has failed in compelling the LPG marketing companies to follow the rules and regulations.
The Authority needs to take action against LPG marketing companies, which according to Irfan Khokar, have created cartel and are selling LPG at their own prices. He also alleged that the LPG marketing companies are not issuing invoices/gate passes to the distributors.
Pakistan's current domestic LPG production stands at 1,200 ton per day, which has reduced from 1,600 tons per day in 2006. Irfan said that there are total 86 LPG marketing companies. Majority of them are owned by retired generals, politicians and bureaucrats. Only 13 marketing companies out of 86 possess the licences to sell imported LPG. According to official figures, total 6.3 million households, out of 25 million, are connected with the systems of Sui-Northern Gas Pipeline (SNGPL) Company and Sui-Southern Gas Company (SSGC) and they are using natural gas as fuel, while the rest of the population is relying on firewood, LPG, diesel, coal and other fuels.