LAHORE: Following disruption in liquefied petroleum gas (LPG) imports due to intervention of the regulator, LPG crisis has started as prices have gone up by Rs 5 per kilogram.
In a statement, Chairman LPG Distributors Association of Pakistan Irfan Khokhar on Tuesday warned that LPG prices will further shoot up as imports have come to halt for last two months.
He said that LPG importers played a key role in bridging gas demand. However, he said that intervention of Ogra in determining prices had caused millions of rupees loss for the industry this year. He said that such practices by the regulator would cause disruption in LPG supply through imports.
He said that import of LPG had been reduced and during last two months, only one Letter of Credit (LC) had been opened due to intervention of OGRA in writing a letter to determine price which not feasible for importers.
He said that shortage of LPG product was leading to hike in prices due to no availability of product. He appealed the government to find out permanent solution by formulating policy to stabilize prices to make imports feasible. He said that price of LPG had increased by Rs 5 per kg and Rs 50 per domestic cylinder and Rs 200 commercial cylinder. He said that price would increase further in coming dues due to non-availability of product followed by disruption in LPG imports.
He said that Petroleum Minister Shahid Khaqan Abbasi had already mentioned in LPG conference held in Lahore on March 14 that policy would be formed to make imports feasible by bridging price gap between locally and imported product.
Irfan Khokhar said that government should immediately announce the policy to enhance supply of LPG through imports. He said that government had already taken initiatives that led to increase supply of LPG to 2,801 tonnes per day in FY 2015-16 as compared to 1,899 tonnes per day in FY 2014-15.The consumption increased to 3,055 tonnes per day from 1,915 tonnes per day.
After increase, The prices of LPG stood at as Rs 90 per kg in Karachi ( Rs 1030 domestic cylinder), Lahore, Gujranwala, Faisalabad, Jhelum, Kasur, Sahiwal, Sailkot, Daska and Peshawar, Rs 95 per kg (1090 cylinder), Rahi Yar Khan, Sadiqabad, Mirpur Azad Kashmir, Islamabad Rs 110 per kg (1270 domestic cylinder), Murree, Abbottabad, Bagh, FATA, Kotli Azad Kashmir Rs 115 per kg (1330 domestic cylinder).
However, he hailed the efforts of government for creating environment for imports that played a key role in enhancing supply of LPG to cater demand of domestic, commercial and industrial sectors. - NNI