LAHORE: LPG Association of Pakistan has demanded of the government to withdraw recent hike in LPG prices as it has soared the prices of the poor people’s fuel, a press release issued here said.
While addressing an urgent meeting, LPG Association of Pakistan Chairman Farooq Iftikhar said that local LPG industry is already struggling because of massive import of LPG, smuggling at vast scale and unbalanced policies while recent increase in LPG prices will further aggravate the situation.
Farooq Iftikhar said that prices of LPG have been raised without keeping in view the ground realities. It seems that this initiative has been taken to benefit some particular elements. He said that import of low-quality LPG, injurious to health is obviously selling at cheaper rates and LPG Marketing Companies selling good quality local LPG are incurring heavy losses as presently imported LPG is about 20 per cent cheaper than the locally produced.
He said that marketing companies selling locally produced LPG are not even recovering their basic cost and it is getting difficult for them to continue their business in face of the non-supportive attitude of the government and local producers.
“Local marketing companies are already in deep trouble due to imports and smuggling of low-quality LPG at vast scale and while price hike will make things worse and cut the already weak demand for the product”, LPGAP chairman added, saying that LPG will no longer remain cheaper than petrol, which will further erode interest in setting up autogas stations.
He said that increase in LPG prices will on immediate basis skyrocket the prices of LPG in the local market thereby further squeezing the poor consumers who already find it impossible to buy LPG in front of high ceiling inflation soaring up and up each passing day.
Farooq said that the decision of LPG price hike is made behind the closed doors without seeking any input from the LPG stakeholders including the producers and marketing companies has ostensibly been prepared to favour some particular elements. Farooq Iftikhar demanded the immediate withdrawal of hike in LPG prices to save the local LPG marketing companies.
