LPG jumps by Rs 15 per ton as producers shift levy to consumers

KARACHI: Local producers of liquefied petroleum gas (LPG) have shifted the burden of levy on LPG to 60 million consumers, raising its prices Friday by Rs 15,850 to a record Rs 109,700 per ton.

Chairman of FPCCI Standing Committee on LPG and All Pakistan LPG Distributors Association (APLDA) Abdul Hadi Khan, while expressing his disappointment over this rise, said that the raise of Rs 15,850 included the levy of Rs 11,400 per ton on LPG.

This has enhanced domestic prices by Rs 15 to Rs 145-165 per kilo, 11.8 kilo cylinder by Rs 188 to Rs 1,652 and 45.4 kg cylinder by Rs 726 to Rs 6,356, he added.

He said that the government could not stop producers from passing on LPG levy to consumers, raising its prices to record high in the country's history.

This will have a negative impact on LPG sales and make this fuel out of the reach of common consumers.

Hadi alleged that the local producers have been given liberty to raise LPG price at their own will, which amounts to drop a price bomb on the consumers who are already burdened with unprecedented price hike.

Hadi said that he has convened an emergency meeting of over 6,000 distributors and other stakeholders to devise a line of action against this price rise and transfer of LPG levy to the consumers.

He further alleged that local producers have restricted the daily production to 1,100 to 1,200 tons since last seven months, with some producers planning to go for production shut down in the mid of March, thus further reducing LPG production to 600 to 700.

"This will enable the non-representative stakeholders to take advantage of big gap between demand and supply of LPG and resort to profiteering", he noted.

Hadi urged the Petroleum Minister to take effective measures to bring down LPG prices to a reasonable level and provide relief to 60 million consumers and save jobs of thousands of people attached to this industry.

He said local production cost of LPG is Rs 13,000 to rs 14,000 per tonne while it is being sold at Rs 109,700 per ton. He underlined the need for developing a price mechanism to bring down LPG price and save this sector from collapse. (APP)