KARACHI, Feb 7: The LPG Distributors and Welfare Association (LPGDWA) has failed to take any action against the retailers who have increased the rate of LPG to Rs55-57 from Rs50 per kg.

The association on Monday had indicated that the retail price of LPG would range between Rs52-53 per kg from Rs50 per kg after the Ogra’s decision of raising price by 12 per cent on February 3. They had also threatened to take action against retailers, who were found charging over Rs53 per kg.

Besides, the association had also vowed to boycott the purchase of gas from those marketing companies, which would sell 11.8 kg cylinder beyond Rs585 to the distributors.

All the marketing companies had already pushed up the rates to Rs610 on Monday. It appears that some members of LPGDWA have started lifting gas from the marketing companies at higher rates as they know how to recover the increased price from the retailers. However, retailers in turn can easily recover the increased amount from the consumers.

Retailers in various areas, interviewed by Dawn, said that they had purchased the gas from distributors at Rs630 per 11.8 kg cylinder on Wednesday, which comes to Rs53 per kg. After keeping some profits that they are charging consumers Rs55-57

per kg.

They said the distributors had earlier quoted the rate at Rs610 on Tuesday but they deviated from their price commitment. The retailers further said that they had also slashed required gas quantities lifted from the distributors because of higher prices.

However, they said that because of the price hike by marketing companies and distributors – rickshaw and taxi drivers and even household consumers had curtailed their buying. Consumers, who used to buy six kg, are now buying three kg due to higher prices. Besides, demand at the end of the winter season has also come down, they added.

Surprisingly, Chairman LPGDWA Hadi Khan was totally unaware about the increase in gas price to over Rs53 per kg made by the retailers since Tuesday night. Without checking the markets, he claimed that the LPG was still selling at a price not more than Rs53 per kg on retail in the city after the increase of Rs2 to Rs3 per kg as predicted by him earlier.

He said our members were providing 11.8 kg cylinder to retailers at Rs 605, which comes to Rs51.27 per kg then how they can charge Rs55-57 per kg.

It may be noted here that the LPGDWA had never taken any action against the retailers for overcharging.

In January 2006, the LPG price, including general sales tax and excise duty, was Rs19,647 per ton. On February 3, it was quoted at Rs38,467, up by Rs18,820 per ton, during the last one year.