OGRA asked to determine profit among LPG producers, companies, distributors
By Khalid Amin

ISLAMABAD—The LPG Distributors Association of Pakistan on Wednesday demanded of Oil and Gas Regularity Authority (OGRA) to constitute a committee to determine profit among LPG producers, marketing companies and distributors aimed at bringing down LPG prices in the country.
Addressing a press conference here, Central Chairman of the Association, Irfan Khokhar said between 2004 and 2006, there was 60 percent difference between prices of petrol and LPG.
“Keeping in view this difference, a formula should be introduced linking the increase with the rise in prices of petrol, diesel and kerosene oil,” he proposed.
He claimed that except, Jamshoro Joint Ventures Limited (JJVL), all marketing companies were charging Rs.39,809 per ton despite the fact that the Prime Minister has directed to de-link LPG prices from the international market.
Irfan Khokhar accused the LPG production companies of 133 percent increase in the prices of Liquified Petroleum Gas (LPG) in the last 19 months and alleged that LPG producers earned a profit amounting to Rs.3.11 billion by selling local LPG on international rates.
He also expressed a need to include LPG in the petroleum policy by subsidizing prices of this fuel like petrol, diesel, kerosene and natural gas. Central Chairman also called for righting off all taxes imposed on the import of LPG and bringing the prices at the level of Rs.25,000 per ton which would help decrease Rs.200 per cylinder.
The margin of distributors should be fixed at Rs.80 per cylinder and relief should be passed on to the consumers as early as possible, he added.
Responding to a question, he informed that the association has decided to postpone a shutter down strike as the Ministry of Petroleum and Natural Resources has convened a meeting with their representatives to resolve their problems.
He however clarified that the Association would again give a strike call on January 15, if LPG prices were not brought down. The Chairman appreciated OGRA for issuing licenses to five LPG cylinder manufacturing companies.
After the issuance of licenses, the OGRA alongwith Punjab Government would launch a campaign against 300 manufacturers of sub-standard LPG cylinders in Gujranwala from December 27, he added.
He also claimed that only last year, 722 innocent lives were lost during LPG cylinders related incidents owing to use of sub-standard cylinders. “Now the situation is improving and there was about 60 percent decrease in LPG cylinders related accidents,” he added.