''LPG mafia'' earned Rs 350 billion in six years: distributors say...

Over the past six years the ''LPG mafia'' earned Rs 350 billion by fleecing the masses. Muhammad Irfan Khokhar, Chairman All Pakistan LPG Distributors Association said this while briefing the National Assembly Standing Committee on Petroleum and Natural Resources, here on Tuesday. He was especially invited to the meeting for a briefing on the Ogra''s role as LPG regulator and the quota holders'' activities.
Khokhar said LPG distributors fully supported the LPG Policy 2011, saying that it would help eradicate cartel created by a few LPG quota holders and would stabilise LPG prices in the country. He said his organisation has prepared a draft regarding the involvement of SNGPL and SSGC in entering the LPG market, according to him within one month both the gas utilities will start LPG marketing if the plan is considered.
Khokhar said ''LPG mafia'' earned Rs 350 billion over the past six years by overcharging the masses after creating artificial shortage of LPG. He said LPG distributors across the country were supporting the government move to impose Petroleum Levy on LPG ie equal to freight charges on imported LPG. He said within next few days the international prices of LPG would decline by $50 per ton which would further reduce local LPG prices.
Khokhar added that local LPG production in 2004 stood at 1800 tons per day, which now 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 in the market, while a group of 25 companies have made a cartel and doing active business. The LPG policy 2011 has provided an open field to all the companies to do business, which would create a healthy business environment besides abolishing cartels," Khokhar maintained. He requested the Chief Justice of Pakistan to take suo motu notice of the LPG marketing companies'' illegal profits. Replying to a question, he said at present after the imposition of PL on LPG the consumer price should not go beyond Rs 122 per kg.