Government yet to fix price of LPG cylinders

The government has yet to determine the rules and regulations for determining the price of LPG cylinders and the summary has been with the Cabinet Secretariat since March 2016, awaiting approval. At present, the process entails the Ministry of Petroleum and Natural Resources issuing a notification that sets the price - the last one issued on 8 June 2016 with the price of domestic cylinders set at Rs 900 per 11.8 kgs or Rs 76,500 per tonne, including general sales tax - and on sends it to Ogra which liaises with the stakeholders to implement the price.
However the June 8 notification, agreed a year ago during the Council of Common Interests (CCI) meeting is no longer acceptable to industry on the grounds that it is one year old price. To determine the new price the Ministry has directed Ogra to liaise with stakeholders. In response Ogra states that it is awaiting clearance of the rules and regulations for regulating the LPG sector which remains pending with the cabinet. An official of Ogra told Business Recorder that it would come up with another price for LPG in the current week after completing its internal assessment and consultation process with stakeholders.
The regulatory body had directed 14 LPG Marketing Companies and LPG producers to submit specific information with respect to LPG business of the last three years including monthly sales volume, monthly sale price per M. Ton, annual sale revenue, the details of direct and indirect expense by Tuesday (today).
Ogra further warned the LPG companies and producers that "default in the submission of desired information may create supply constraints as well as price distortion," the authority observes. The Ministry recently proposed LPG prices at Rs 1,100 per 11.8 kgs domestic cylinders and directed Ogra to implement the decision. Ogra wrote to the stakeholders that "Your (companies/producers) failure to comply with the directions within specified time shall tantamount to contravention of provisions of Ogra, leading to imposition of penalty."
Meanwhile LPG Distributor Association Pakistan criticised the role of Ogra and warned that prices set by Ogra had led to cancellation of LPG import orders that may cause a shortage of LPG supply in the country. The association states that there will be no imports in the coming months which will lead to another crisis.