LPG being sold at exorbitant prices amid high demand in Ramadan

OGRA fixed LPG price at Rs 257/KG while it is being sold at Rs 300 to Rs 320 per kg

As the holy month of Ramadan kicks off across the country the Liquefied Petroleum Gas (LPG), once again comes in high demand due to irregular supply of natural gas. However, the LPG is reportedly being sold at exorbitantly high prices leading to public dismay.

Even after OGRA had fixed the LPG price at Rs 257 per kilogram for the month of March 2024, the fleecing of the LPG consumers is continued amid the holy month of Ramadan as LPG is being sold at excessive prices of Rs 300/KG to Rs 320/KG in various areas of the country.

The Oil and Gas Regulatory Authority (OGRA) has asked the Provincial Chief Secretaries to direct local governments to ensure the sale of LPG on OGRA prescribed prices to the end consumers. Taking notice of the illegal hike in LPG price, the OGRA on Wednesday asked the Provincial Chief Secretaries to take strict action and ensure the sale of LPG at OGRA prescribed prices to end consumers.

According to OGRA, the authority has taken notice of the market reports regarding a surge in LPG prices even though ample stocks of LPG molecules are sufficiently available in the country. The OGRA has also instructed the local governments to take immediate necessary action against illegal hoarders.

Additionally, OGRA Enforcement teams are already in the field to monitor the stocks and ensure sale of LPG on prescribed prices.

OGRA says that an initial scrutiny of the matter reveals that hoarding of LPG stocks is the primary cause of the artificial increase in LPG prices. It adds that some unscrupulous elements are artificially restraining the stock from consumers’ approach and are selling the product beyond OGRA prescribed LPG prices.

Perturbed over the artificial price hike of LPG, Chairman LPG Industries Association Pakistan, Irfan Khokhar, said that LPG is not available anywhere in the country at official prices in the month of Ramadan. He revealed that LPG is being sold at Rs 300 to Rs 320 per kg in the plain areas of the country while LPG is being sold at Rs. 400/KG in the hilly area (Gilgit-Baltistan) and remote areas.

He said that the black market of LPG can be controlled by increasing the local production of LPG. The country has a daily production of 6,000 metric tons of LPG while local consumption exceeds 150,000 tons. 60 percent of the domestic demand is being fulfilled with imported LPG. Due to the closure of the LPG plant of Jamshoro Joint Venture Limited (JJVL), the government is facing a loss of billions of rupees and people are forced to buy expensive gas, said Irfan Khokhar.

The LPG Industries Association, hence demands from the government that the LPG plant of JJVL should be run immediately to avoid further losses, Irfan Khokhar added.

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