LPG Sellers Earn Rs. 1.4 Billion Extra by Overcharging Everyone

Consumers in Pakistan have reportedly paid more than Rs. As market rates climbed to more than double the official rate, according to the LPG Distributors Association, 1.4 billion extra for liquefied petroleum gas (LPG) in just five days.

Key points

• Khokhar remarked daily LPG consumption had risen from around 60, 000 to 65, 000 kilograms to approximately 70, 000 kilograms as the weather changed.
• Ir fan Khokhar, chairman of the LPG Distributors Association, remarked the Oil and Gas Regulatory Authority (OGRA) had set the LPG rate at Rs.
• While domestic production accounted for the remaining 30 percent, khokhar remarked around 70 percent of Pakistan's LPG was imported.
• Sheikh Mukarram, president of the LPG Importers Association, attributed the cost surge partly to the closure of the Taftan border.
• In Punjab, including Lahore, the provincial enforcement force had taken action against more than 10 shopkeepers.

Meanwhile, the association has accused regulators of failing to stop the overcharging despite repeated complaints.

Ir fan Khokhar, chairman of the LPG Distributors Association, remarked the Oil and Gas Regulatory Authority (OGRA) had set the LPG rate at Rs. 280 per kilogram, but consumers were being charged between Rs. 600 and Rs. 625 per kilogram.

He remarked buyers were paying around Rs. 320 more per kilogram than the notified cost.

Based on the higher consumption and cost difference, he estimated that consumers had paid more than Rs. 1.4 billion above the official rate over five days. Senate Panel Directs PEMRA to Add Warnings to Formula Milk Ads. OGRA Faces Questions Over Cost Enforcement.

As the report notes, LPG continued to be sold above the notified cost for five days without action against plant operators. Sources within OGRA remarked office-holders had spent two days discussing which authority should take enforcement action.

OGRA is authorized to act against LPG marketing firms and plant operators, but no plant had reportedly faced action at the time of publication.

In Punjab, including Lahore, the provincial enforcement force had taken action against more than 10 shopkeepers. Some retailers remarked they were buying LPG at around Rs. 550 per kilogram and could not sell it at Rs. 280 without incurring losses.

They complained that enforcement teams were confiscating their gas filling equipment and imposing fines, leaving some considering closing their businesses. Importers Blame Shortage and Transport Costs.

Sheikh Mukarram, president of the LPG Importers Association, attributed the cost surge partly to the closure of the Taftan border. It he stated had caused a shortage.

He additionally criticized OGRA's transport cost calculations, arguing that the regulator was using transportation rates based on 2010 figures despite LPG tanker transport costing between Rs. 50, 000 and Rs. 60, 000.

Mukarram remarked the association had repeatedly informed OGRA Chairman and other senior office-holders regarding the matters but had received no meaningful response. He cautioned that businesses could face pressure to shut down if the difficulties remained unresolved.

While domestic production accounted for the remaining 30 percent, khokhar remarked around 70 percent of Pakistan's LPG was imported. He called on the administration to take direct control of the situation to ensure consumers could obtain LPG at affordable costs. Stay Connected with ProPakistani.

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For now, LPG Sellers Earn Rs. 1.4 Billion Extra by Overcharging Everyone remains the part of the story worth watching, and further updates are likely as more details are confirmed.