LPG industry, govt failed to reach understanding on LPG consumers’ price

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The government recommended the stakeholder of LPG to fix Rs 895 for domestic cylinders. 

However, the LPG companies and distributors have declined to the government’s proposed price for domestic consumers saying that it was a reasonable price.LPG dealers association has said that the proposed price was not feasible for LPG imports and demanded to take weighted average of locally produced and imported gas to determine price.

– A meeting between Petroleum Division and LPG distribution and marketing companies remained inconclusive over determination of LPG prices for domestic consumers.

A committee constituted to work out the LPG consumer prices for issuance of guidelines to Oil and Gas Regulatory Authority (OGRA) held a meeting on Thursday. Additional secretary Nasir Jami headed the meeting and attended by representatives of LPG producing, marketing and distributing companies.

The committee was constituted to work out LPG consumer prices for issuance of guidelines to OGRA for their necessary notification.

After the meeting, Irfan Khokhar Chairman LPG Distribution Association told the media persons that the propose consumer price of the federal government was unrealistic as current price of domestic cylinder was ranging from Rs 1200 to 1400 depending on regions.

He said that LPG stakeholder suggested a formula in the meeting to calculate the actual price of LPG consumers. The price of LPG should be based on weighted average of locally produced LPG and import price of LPG.

He further said that the government proposed a profit of Rs 24,000 per ton for LPG distribution and marketing companies. However, LPG marketing companied has sought Rs 29,000 per ton LPG which included margins of LPG distributors. However, chairman LPG distributors association Irfan Khokhar suggested separate profit of dealers at 15 percent on sale price of LPG.

He said that imports should be made feasible for smooth supply of LPG to avoid the demand supply issue.

“If imports are reduced, there would be demand supply issue in winter season causing shortage and black marketing of LPG, he said adding that there was 5.5 per cent advance tax on imports of LPG and demanded to impose 10 per cent petroleum levy on locally produced LPG to end disparity in prices of local and imported LPG. He said that share of imported LPG was 40 to 50 per cent at present that would rise in winter season. He said that import of LPG was contributing to meet local demand of consumers.

Posted on: 2017-09-29T09:16:00+05:00


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