LPG prices have increased dramatically, hitting record-breaking highs in major cities. In Gujranwala, LPG is being sold between Rs420 and 460 per kilogram which is causing severe hardships for people needing it for domestic use and the rickshaw drivers who rely on it for their daily livelihoods.
Meanwhile in Karachi the price has been pushed up substantially with LPG being available at Rs350 to Rs380 per kilogram.
The Convener of LPG committee, Ali Haider, also stated that the rise in prices cannot be attributed to shopkeepers only.
According to him, marketing companies and distributors are also actively involved in increasing the price.
He further explained how the overall rise of Rs130 per kg covers the involvement of different stakeholders in various parts of the supply chain and points to deeper structural problems in the LPG distribution system.
Ali Haider’s statement implies that the issue of the price hike is not isolated as it is more of a structural problem in the whole supply chain.
This situation has heightened the concern among the citizens and many of them are now demanding stricter regulatory measures to be taken in order to prevent an unjustifiable increase of prices and also to ensure fair pricing to the consumers.
On the other hand, a spokesperson for the Oil and Gas Regulatory Authority (OGRA) explained that the authority has not received any official information about the recent increase in prices.
He stressed that if prices above the rates are determined by the shopkeepers, then it is the responsibility of the provincial government to take appropriate action against such violations.
The spokesperson also said the delay in the supply of 3.5 million kilograms of LPG from a ship at Port Qasim has nothing to do with OGRA as well, and distanced the regulatory body from the supply issues that are ongoing.
Overall, it looks like a growing disconnection between regulatory control and the realities of the market.
