LPG sold above official rates in Lahore and other cities

Liquefied petroleum gas is not being sold at official government rates in Lahore and other cities, according to reports in Express News, Daily Pakistan and Nawa-i-Waqt. Prices have not come down despite action against shopkeepers.

Consumption is rising because of the change of season and the energy crisis, and prices are rising with it. Consumers are reported to be buying LPG well above the official rates.

Shopkeepers say agencies including Para Force seize their LPG pumps, each worth 70,000 to 75,000 rupees. They say the losses are ultimately recovered by raising prices for consumers. They also ask why operations target only shopkeepers and not LPG companies.

According to OGRA data, only 45 of 411 LPG companies hold local production quotas. More than 300 companies buy LPG from those holders and resell it. OGRA is trying to end the quota system and introduce a bidding system.

Rana Abdul Jabbar, a senior leader of the LPG distributors association, said the plants, not the distributors, are responsible for the high prices. He said plants supply LPG at about 550 rupees per kg.

He also said OGRA's price notification is wrong because transport and other costs in it are based on 2016 rates, while costs have risen significantly over the last 10 years.

The association has submitted a complete pricing schedule to the government and will seek its implementation after consultation and legal steps. It expects LPG to be priced between 400 and 450 rupees per kg next month, and says a pricing formula has been agreed with the government.