LPG price slashed by Rs 5 per kg

The Liquefied Petroleum Gas (LPG) marketing companies have reduced price by Rs 5 per kg and now there is Rs 55 reduction on domestic cylinder of 11-kg and Rs 120 on commercial cylinder. According to Ogra officials, more reduction in LPG prices is expected within next few weeks as per new LPG policy, which has made it mandatory for the marketing companies to import 20 percent of the total allocated gas quota.
The LPG price in Karachi has been reduced from Rs 115 to Rs 110 per kg, while in Lahore, Faisalabad, Azad Kashmir and Gujranwala from Rs 120 to Rs 115 per kg. LPG would be sold at Rs 125 per kg in Peshawar, Multan and Bahawalpur while it would be sold at Rs 135 per kg in Rawalpindi, Islamabad, Murree and Muzaffarabad.
After the announcement of LPG Policy 2011 the prices have witnessed a reduction of Rs 125 per domestic cylinder and further reduction of Rs 5 per kg in the prices is expected up to September 24. Pakistan's current domestic LPG consumption is around 5,000 tons per day and local production stands at 1,200 tons per day, which reduced from 1,600 tons per day in 2006.
Current LPG price stands at Rs 84,000 per ton, which in 2005-06 was Rs 17,000 per ton. In the market of Rawalpindi/Islamabad a consumer pays Rs 140 per kg, which indicates that dealers and marketing companies are earning Rs 56-66 per kg. LPG Distribution Association Chairman Irfan Khokar while talking to Business Recorder said over the past five years LPG marketing companies have made Rs 350 billion by overcharging the poor consumers and no one has taken action against these influential people.
He said the Federal Investigation Agency and the Federal Board of Revenue have requested the Oil and Gas Regulatory Authority (Ogra) for provision of last five years record of the LPG marketing companies, so that proper inquiry could be conducted against marketing companies for pocketing billions of rupees.
He said as many as 86 LPG marketing companies are doing the business and majority of them are owned by retired generals, politicians and bureaucrats. Previously only 13 marketing companies out of 86 possessed the licenses to sell imported LPG. The new LPG policy would bring positive changes in the business, as Ogra has made it compulsory for all the marketing companies to import 20 percent of their LPG allotted quota, he added. According to official figures 6.3 million households out of 25 million are connected with the systems of Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) which are using natural gas as fuel. While the rest of the population is relying on firewood, LPG, diesel, coal and other sources.