KARACHI, Jan 4: The Oil and Gas Regulatory Authority (Ogra) has directed the LPG marketing companies and their distributors and retailers to ensure that the LPG is not sold for more than Rs63 per kg anywhere in Pakistan, except in the Northern Areas, AJK and Fata where the retail rate should not exceed Rs66 per kg.

The retailers had pushed up rates to Rs65 a kg from Rs60-62 on Dec 20, but after Benazir Bhutto’s assassination, LPG is now selling between Rs68 and 70 in Karachi and in Lahore, the price hovers between Rs90 and 95. Prior to Eid, it was priced at Rs56-58.Consumers are of the view that the government, it seems, was not aware of the fact that the LPG marketing companies had themselves announced before Eid that consumers should not more than Rs57 per kg at the retail stage.

The consumers were also asked to lodge complaints with the marketing companies and the government against hoarders, profiteers and black-marketers.

However, nothing practical has been done both from the consumers’ end and also from the marketing companies although it was announced that agencies licences would be cancelled if they indulged in hoarding and black marketing.

Consumers said that it seems that the government, while ignoring the market reality, had come out with a higher minimum retail price of Rs63.

A spokesman for the LPG Association of Pakistan, a group of marketing companies, Fasih Ahmed, said that LPG distributors and retailers have been buying the product from LPG marketing companies at cheaper rates and many, especially in the Punjab, have been black-marketing it.

The association said it would back Ogra and the local district governments to ensure strict compliance of the Ogra-mandated maximum retail prices.

He said legal action would be taken against LPG distributors involved in profiteering despite the Ogra directive.

Mr Hadi Khan of the LPG Distributors Association of Pakistan (LPGDAP) said that the marketing companies were providing 11.8 kg cylinder at Rs730 to Rs850 now, while it was available at Rs660 ahead of the Eid.

It would now be very hard to sell gas at Rs63 a kg at retail, he said, adding gas demand had surged to 2,000 tons a day from 1,600-1,700.

For the last one week, there had been a slowdown in the production as many producers in Sindh have shut down their units. Now some units have resumed production from Friday.

In case, production level is maintained at a higher level, prices would come down, Hadi said.

A distributor in Lahore said an 11.8kg cylinder in the Punjab is selling between Rs825 and Rs1,000, while it was available at Rs680 before Eid.