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Wednesday April 24, 2024

LPG sellers overcharging consumers despite decrease in rates

It is being sold at Rs160 to Rs180 per kilogram against it fixed price of Rs110

By Khalid Iqbal
January 25, 2015
Rawalpindi
The rates of Liquefied Petroleum Gas (LPG) have once again decreased reasonably by Rs15 per kilogram but powerful retailers and wholesale dealers are taking full advantage of non-availability of gas in homes and looting public at their will. They are still selling 1-kilogram LPG at Rs160 to Rs180 against Rs110, which LPG Distribution Association has fixed a couple of days back.
Some of LPG sellers are selling 1-kilogram gas at Rs200 but local management is seeing the whole drama with closed eyes and reluctant to take any action against the profiteers.
LPG Distribution Association Chairman Irfan Khokhar has admitted that prices of commodity reasonably decreased but retailers are still overcharging consumers and selling it on higher prices. He said that according to new fixed rates, 1-kilogram LPG would be available in Punjab including Rawalpindi and Islamabad at Rs110 against previous rate of Rs125, in Karachi at Rs100 against Rs115, in KP and Gilgit-Baltistan at Rs120 against Rs135.
He said that after decreasing prices, domestic cylinder of LPG has decreased by Rs175 while commercial by Rs668.
While, LPG users in rural areas in Rawalpindi and Islamabad are facing shortage of the commodity for a couple of days and are forced to buy LPG in black.
Already, more than 50 per cent people, who have no natural gas connection in their houses, have been using LPG as fuel but nowadays, in severe winter, around 100 per cent consumers are using alternative sources of fuel including LPG due to absence of natural gas in homes. Due to it, retailers and dealers are openly ignoring the directions of Oil and Gas Regulatory Authority (Ogra) and bent upon looting helpless consumers.
During a visit to different LPG outlets in the twin cities of Rawalpindi and Islamabad, 'The News' has learnt that almost all retailers are overcharging consumers by Rs50 to Rs70 per kilogram stating that the government LPG marketing companies have increased the commodity prices. The LPG retailers are looting public only due to the mismanagement by concerned authorities as they are not monitoring them properly.
A key post official from Oil and Gas Regulatory Authority (Ogra), on condition of anonymity, said that LPG auto refuelling stations could not attract investors, as Oil and Gas Regulatory Authority issued only 50 licences to seven firms this year. In order to meet growing energy demands and severe shortage of natural gas especially in winter, government has been planning to introduce LPG as alternative fuel, he claimed.
He also told this scribe that as many as 4,314 LPG distributors are registered with different LPG marketing companies, while another 9,000 distributors are yet to be registered. He said Ogra could only take action against registered dealers on decanting and overcharging.
Experts believe that recent slump in petrol prices that brought one-litre petrol to around Rs78 would exert a further negative impact on the LPG re-fuelling business in the country.
Talking to 'The News' people said that LPG retailers and dealers are looting public but concerned authorities are looking at the whole drama with closed eyes.
Niaz Ahmed, an LPG user, said that retailers have broken the back of a common man as they are openly fleecing public by selling LPG in higher prices. But, local management and concerned authorities were seeing the whole drama with closed eyes.
Muhammad Habib, another consumer, said that he has gas connection at his home but there is no gas for stoves. "In the state of helplessness we are using LPG at home, but skyrocketing prices are creating financial difficulties for us, but the concerned authorities are not taking any action," he said.
Similarly, Additional District Collector (ADC) Muhammad Arif Raheem has given a policy statement that they are making a strong planning to trap LPG looters. "I have formed special teams to monitor LPG 'mafia' who is selling commodity at higher prices," he said.