LPG prices raised by Rs7 per kg

ISLAMABAD: Acting brazenly, the Liquified Petroleum Gas (LPG) marketing companies have yet again increased prices by Rs 7 per kg, putting extra burden on the masses already groaning under double digit inflation.

As a result of what the distributors association described an "illegal increase" just in a short period of time, prices of domestic cylinder was increased by Rs 80 and commercial cylinder by Rs 320.

After the increase the prices of LPG in Islamabad, Peshawar and Multan are Rs 107 per kg while in Karachi and Hyderabad the LPG would be sold at Rs 90 per kg.

Similarly the prices soared to Rs 102 per kg in Lahore, Gujranwala and Sahiwal while Rs 117 per kg in Gilgit and Rs 110 per kg in Murree and Rs 127 per kg in Federally Administered Tribal Areas (Fata).

"The marketing companies have mocked the government's relief-oriented efforts and its claims for the raise has been effected without permission of the concerned body-Oil and Gas Regulatory Authority (OGRA)," chairman of the association Muhammad Irfan Kokhar said.

The hike was announced a day before when National Assembly Standing Committee on Petroleum and Natural Resources is going to take up the issue of LPG on Wednesday, reflecting how openly the marketing companies were challenging such moves, he said.

On the association part, it threatens off and on to launch countrywide strikes and have meetings with government's officials holding out assurances such malicious hike would not be made in future but these efforts in masses' live memory have never come to anything.

"The unabated upward trend in LPG prices has affected the poor segment of the society manifold, these unscrupulous marketing companies have earned about Rs 300 billion on account of such unjustified raises", he alleged.

When asked for any viable solution, the association chairman said the Ogra would have to exercise its powers under relevant rules to rein in the anti-market forces in LPG business.

While so far, he said the authority could not do anything useful to the advantage of the poor masses, providing an opportunity to anti-market forces to make a fast buck by injecting unjustified raises by each passing day.

He suggested the LPG sector needed a thorough examination of especially its price fixing mechanism to ensure transparency.