LAHORE: Liquified Petroleum Gas Association of Pakistan (LPGAP) has demanded of the government to withdraw recent hike in LPG prices.
While addressing an urgent meeting of the association, LPGAP Chairman Farooq Iftikhar said that local LPG industry is already struggling because of massive import of LPG, smuggling is being done on a vast scale and unbalanced policies are being implemented while recent increase in LPG prices is further aggravating the situation.
Farooq Iftikhar said that prices of LPG have been raised without keeping in view the ground realities.
“It seems that this initiative has been taken to benefit some particular elements,” he said adding that import of low-quality LPG is injurious to health and is obviously selling at cheaper rates.
LPG marketing companies selling good quality local LPG are incurring heavy losses as presently imported LPG is about 20 percent cheaper than the locally produced one. He further said that marketing companies selling locally produced LPG are not even recovering their basic cost and it is getting difficult for them to continue their business in face of a non-supportive attitude of the government and local producers.
“Local marketing companies are already in deep trouble due to imports and smuggling of low-quality LPG at a vast scale and so price hike is making things worse and cutting the already weak demand for the product,” the LPGAP chairman added, saying that LPG will no longer remain cheaper than petrol, which will further erode interest in setting up autogas stations.
Farooq Iftikhar further said that increase in LPG prices will on immediate basis skyrocket the prices of LPG in the local market thereby further squeezing the poor consumers who already find it impossible to buy LPG in front of high ceiling inflation soaring up and up each passing day. The decision of LPG price hike is made behind closed doors without seeking any input from the LPG stakeholders including the producers and marketing companies.
Published in Daily Times, June 3rd 2018.
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