ICCI demands reduction in prices of LPG
Staff Report

ISLAMABAD—President Islamabad Chamber of Commerce & Industry Nasir Khan showed his great concern over the continuous increasing prices of Liquefied Petroleum Gas ( LPG ) and demanded the Government to link the prices with local market.
He further said that 98% of the national requirements are met with the locally produced LPG, but by linking the local LPG prices to international rates, huge gains are being made to accrue to some large multi-national companies.
President was also informed in a meeting with the representatives of local LPG distributors that most LPG production companies are taking the profit of Rs 35 per one kilogram of gas. They further informed this measure has caused 17 marketing companies to come to a close and more are expected to halt their operation in future.
Local distributors informed the president the price of gas was Rs 19,648 per metric tonne two years back and now the price of LPG is Rs 40,842 per metric tonne with net increase of 105 percent. President termed the increase in LPG prices as injustice with poor people of the country and was of the view that its prices are badly affecting the domestic budget of households. He added increase in the prices would discourage its consumption and force the people to revert to the use of coal and wood. President said that such gas was produced locally but unfortunately the Government in the Economic Coordination Committee’s (ECC) meeting held in January 2007 attached its prices determination with international market prices. He cited the example of India that provided 60 percent subsidy on gas prices for the relief of its people
Saying there was no justification for increase in the LPG price as it was an indigenous product, they urged that such a step would also affect exports owing to significant increase in the cost of production. It would make the products uncompetitive in the international market, they feared.