The Oil and Gas Regulatory Authority (Ogra), which sets fuel and gas prices, has raised the official liquefied petroleum gas (LPG) rate for November, even as sellers in the open market charge roughly twice that figure amid a reported shortage.
In a Saturday notification, Ogra fixed the November producer price at Rs294,075 per tonne, up from Rs279,341 the previous month. That works out to an official retail rate of Rs294 per kilogramme. An 11.8 kg domestic cylinder is now listed at Rs3,470 — Rs173 more than before. Ogra said the LPG consumer price rose by Rs14.73 per kg after Saudi Aramco contract prices climbed 6.47 per cent, while the average dollar exchange rate eased by 0.12 per cent.
Open market far above official rates
Away from the notified rate, LPG is selling for as much as Rs630 per kg in the open market. Company-operated franchises are charging up to Rs400 per kg. Industry voices warn that the crunch could worsen while supplies remain tight.
LPG Distributors Association of Pakistan Chairman Irfan Khokhar called the situation serious, linking it to the Iran border closure. He said at least 70 per cent of LPG was imported from Iran and only about 30 per cent was produced locally. He urged the government to act against market manipulation.
Marketers warn of Nov 16 shutdown
Pakistan LPG Marketers Association Chairman Ali Haider said marketing companies would observe a strike from 16 November if a new LPG policy sidelined the private sector. He argued the government should not reverse deregulation and also tied the shortfall to the Iran border closure.
Mr Haider said that of around 1.3 million tonnes of LPG, only about 225,000 tonnes came from the Gulf, largely through private importers. He added that the ProGas terminal at Port Qasim is controlled by Sui Southern Gas Company (SSGC), which last brought in LPG about seven months ago.
The association wrote to Petroleum Minister Ali Pervaiz Malik that a draft policy sent to the prime minister had no private-sector input, and it called for full deregulation of the LPG sector. It noted that the 2016 LPG policy placed a Rs4,669-per-tonne petroleum development levy (PDL) — a government charge — on locally produced LPG, meant to help state entities such as PSO, Parco and SSGC import fuel in winter or emergencies. Mr Haider alleged that despite large PDL collections, those entities had not imported LPG in the current shortage.
Timeline: what has happened so far
- 2016: LPG policy imposes a Rs4,669-per-tonne PDL on locally produced gas to support state imports in winter or emergencies.
- About seven months ago: SSGC last imported LPG through the ProGas terminal at Port Qasim, according to marketers.
- Saturday: Ogra notifies November prices at Rs294,075 per tonne (Rs294/kg); an 11.8 kg cylinder is set at Rs3,470.
- November: Official rate rises about Rs15 per kg; open-market prices reach up to Rs630 per kg.
- 16 November: LPG marketers say they will strike if the draft policy is implemented without private-sector input.
Aasan alfaaz mein
Sarkari rate ke mutabiq ab LPG 294 rupay kilo hai, aur 11.8 kilo wala cylinder 3,470 rupay ka hai. Market mein kai jagah yeh 630 rupay kilo tak bik raha hai, jo bohot mehnga hai. Iran border band hone ki wajah se supply kam batayi ja rahi hai. Agar marketers 16 November se band kar dein to cylinders aur mushkil se mil sakte hain.
