Ogra swings into action against artificial hike in LPG Prices
The Oil and Gas Regulatory Authority (Ogra) has taken action against an artificial increase in LPG prices after complaints that the LPG mafia has started selling liquefied petroleum gas at prices up to 90% higher than what Ogra has set for September.
LPG is being sold for between Rs 300 and Rs 360 per kilogramme instead of the Rs 212 per kilogramme set by Ogra for the month of September 2022, according to Erfan Khokhar, the head of the LPG Industries Association.
In areas hit by flooding, the LPG mafia is selling LPG up to Rs 400 per kilogramme, which is 90% more than Ogra’s price of Rs 212 per kilogramme.
In response to this, Ogra sent letters to all of the chief secretaries and the chief commissioner in Islamabad to make sure that the price of LPG for the current month is in line with what Ogra had announced.
LPG Prices set by Ogra
For the month of September, the most LPG can be sold for is Rs. 2496.30 per 11.8-kilogramme cylinder.
Ogra has quoted rule 18 (3) of the LPG Rules, 2001, in a letter. It said, “Price of LPG base-stock and LPG: – If the prices of LPG base-stock or LPG being charged by a licensee under sub-rules (1) and (2) are higher than the prices notified by the Authority, the Authority shall intervene in the public interest.
It further warned to involve the local administration to take action against the defaulting licensees,” the letter said.
“In accordance with Rule-18(3) of the LPG (Production and Distribution) Rules, 2001, OGRA has to REGULATE and ENFORCED the notified price of LPG with the help of local administration, who are already allowed by section 29 of the OGRA ordinance, 2002, to take action against overpricing of LPG,” the letter said.
In light of the current complaints and reports of price hikes or overcharging for LPG, Ogra has asked the Provincial Governments to ensure the display of the notified LPG prices at LPG storage and filling plants and LPG distributors.
The regulator has further warned to start taking action against profiteers under the LPG (Production and Distribution) Rules, 2001, the Petroleum Products (Petroleum levy) Ordinance, 1961, and the Price Control and Prevention of Profiteering and Hoarding Act, 1977, PPC.
In order for the convenience of the public, LPG plants and distributors must put the price of LPG on gate passes and receipts, Ogra said.
The LPG Industries Association has called for a nationwide strike because of how expensive LPG is.
