LPG dealers slam rise in price by SSGC

LAHORE: The rise in liquefied petroleum gas (LPG) price by the Sui Southern Gas Company Limited (SSGC) militates against the government efforts to make the commodity accessible to the masses, said a trade body’s leader.

Chairman LPG Association of Pakistan Farooq Iftikhar said SSGC increased LPG price by18 percent, “which is unjustified and has defeated government efforts to ensure that LPG remains within the reach of the masses.”

Iftikhar slammed SSGC for increasing its LPG price by Rs9,435/ton, or Rs111/11.8kg cylinder.

He said government is demanding reduction in LPG retail prices, “yet its own producers are raising prices beyond reasonable levels during peak demand season.” 

“This will have an immediately adverse effect on retail prices.” he warned.   

State-owned SSGC notified the new price on Wednesday (December 9), but has applied it retrospectively from December 5. 

Inclusive of taxes, SSGC’s latest price is Rs. 61,028 per ton, or Rs. 718/11.8kg cylinder. This price includes a premium that SSGC is now charging. 

Its previous price was Rs51,579/ton, or Rs607/11.8kg cylinder, and did not include a premium.

Iftikhar said LPG prices are expected to continue rising since SSGC intends to raise the premium it is charging from Rs4,551/ton to Rs7,777/ton with effect from January 1.

“According to government directives, producers are not permitted to charge more than the Saudi Aramco Contract Price,” he said. “But LPG producers across the board are continuing to brazenly violate government policy by extracting millions of rupees from licensed LPG marketing companies in the form of premiums that ultimately have to be paid by consumers.”

Chairman LPG Association urged the Oil and Gas Regulatory Authority and the Ministry of Petroleum and Natural Resources to take immediate notice of the malpractices and pricing distortions being introduced into the market by public sector LPG producers.

“The failure to acknowledge and rectify these highly serious distortions jeopardises the public interest,” he said. “The government must ensure that public sector LPG producers operate in a transparent and equitable manner without compromising the interests of consumers.”