Buyers across Pakistan shelled out more than Rs. 1.4 billion extra for liquefied petroleum gas over a five-day span, with market rates climbing to more than double the official limit, the LPG Distributors Association reported. Regulators faced heavy criticism from the group for ignoring multiple complaints about the excessive charges.
Irfan Khokhar, chairman of the LPG Distributors Association, pointed out that the Oil and Gas Regulatory Authority fixed the LPG price at Rs. 280 per kilogram, yet shoppers faced rates between Rs. 600 and Rs. 625 per kilogram.
He mentioned that purchasers were handing over about Rs. 320 extra for every kilogram compared to the official rate.
Khokhar noted that daily LPG usage climbed from roughly 60,000 to 65,000 kilograms up to about 70,000 kilograms as colder weather arrived.
Using the increased usage and price gap, he calculated that buyers handed over more than Rs. 1.4 billion past the official price during the five-day period.
OGRA Faces Questions Over Price Enforcement
Data showed that LPG kept selling above the set price for five days without penalties for plant operators. Insiders at the Oil and Gas Regulatory Authority explained that officials spent two days arguing over which department held responsibility for enforcement.
While the Oil and Gas Regulatory Authority holds the power to penalize LPG marketing firms and plant operators, no plant had received punishment as of publication time.
Provincial enforcement officers in Punjab, which includes Lahore, penalized more than 10 shopkeepers. Several retailers explained they purchased LPG near Rs. 550 per kilogram and would suffer financial losses if they sold it at the Rs. 280 official rate.
Shopkeepers stated that enforcement units seized their gas filling gear and handed out fines, pushing some to weigh shutting down their shops entirely.
Importers Blame Shortage and Transport Costs
Sheikh Mukarram, president of the LPG Importers Association, linked the price spike partly to the shutdown of the Taftan border, which created a supply shortage.
He additionally blamed the transport cost formulas used by the Oil and Gas Regulatory Authority, stating the regulator relied on freight figures from 2010 even though hiring an LPG tanker costs between Rs. 50,000 and Rs. 60,000.
Mukarram stated that the group sent multiple notices about these problems to the Oil and Gas Regulatory Authority Chairman and other top officials, but received no useful reply. He cautioned that companies might face closure pressures if authorities fail to fix the issues.
Khokhar stated that about 70 percent of Pakistan supply comes from imports, while local production covers the other 30 percent. He urged authorities to step in directly to guarantee consumers can buy LPG at reasonable prices.
