Despite the fact that public sector liquefied petroleum gas (LPG) producers have decided not to pass on the impact newly imposed 16 per cent Petroleum Development Levy (PDL) to consumers, LPG price in the provincial metropolis witnessed a sharp increase of Rs12 to Rs15 per kilogram.
Official price notifications issued by the state owned Oil and Gas Development Company (OGDCL) and Pak Arab Refinery Limited (PARCO) indicate that both LPG producers earlier decided to pass on 16 per cent PDL to consumers with effect from September 21, 12:00 PM, but later around 03:00 PM, both companies withdrew their price revision notifications. Meanwhile, Oil and Gas Regulatory Authority (OGRA) issued a notification (No. OGRA-LPG-17(210)/10 dated September 21) and fixed the LPG consumer price at Rs115 per kilogram. Official OGRA notification made available to Profit reads: “In persuasion of Section 3.4.2 of LPG (Production and Distribution) Policy, 2011, the Oil and Gas Regulatory Authority has determined the reasonable consumer price of LPG as Rs1,355 per 11.8 kilogram cylinder, i.e. Rs115 per kilogram.” The notification further directed LPG distributors to ensure compliance until the next determination of reasonable consumer price by the authority. Market survey shows that all LPG companies revised their ex-plant prices, which might be withdrawn on Thursday (today).
Survey witnesses that Mehran Lube Gas, Petroson, and OPI Gas had the highest prices of Rs1,410 per 11.8 kilogram domestic cylinder, while price of some other popular liquid gas brands were Home Gas Rs1,390, Super Gas 1,360, PSO Rs1,205, Caltex Rs1,355 and Premier Gas Rs1,350. Though the LPG Association of Pakistan (LPGAP) and the All Pakistan LPG Distributors Association (APLPGDA) had welcomed the move, but consumers had to pay the price of this whole mess created by the Oil and Gas Regulatory Authority (OGRA), LPG producers and distributors. Market survey shows that liquid gas was remained available in the provincial capital at Rs132 to Rs135 per kilogram on Wednesday, which showed an increase of Rs12 to Rs15 per kilogram.
