Buyers across Pakistan shelled out more than Rs1.4 billion over the authorized price for liquefied petroleum gas during a mere five-day span, with the fuel trading between Rs600 and Rs625 per kilogram compared to the Oil and Gas Regulatory Authority limit of Rs280.
Irfan Khokhar, chairman of the LPG Distributors Association, stated that purchasers are paying an extra Rs320 on each kilogram. Daily usage sits at 60,000 to 65,000 kilograms and climbed to 70,000 kilograms due to weather shifts. Based on his math, this overpricing transferred upward of Rs1.4 billion from buyers to vendors in five days.
OGRA has failed to penalize any marketing firm or LPG plant during this timeframe. Insiders at the regulator noted that recent discussions over the last two days centered on which agency holds the authority to launch enforcement. OGRA possesses the power to penalize solely plant operators and marketing businesses. In Punjab, covering Lahore, the provincial Para Force penalized more than 10 retailers.
Retailers reported receiving LPG supplies at Rs550 per kilogram, making it impossible to retail at Rs280. They explained that enforcement officers seize filling apparatus and levy penalties, leading many to weigh shutting down their shops.
Sheikh Mukarram, president of the LPG Importers Association, blamed the price surge on a supply deficit stemming from the Taftan border closure. He argued that the official notification contained errors by basing transport expenses on 2010 figures, whereas actual freight charges for an LPG bowser span from Rs50,000 to Rs60,000.
He mentioned that the group has consistently notified the OGRA chairman and other top officials without receiving a reply, cautioning that an industry shutdown would deepen the crisis. Khokhar added that 70 percent of the gas comes from imports while 30 percent originates domestically.
