ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) has asked the LPG marketing companies to adhere to their licensing conditions and ensure that their dealers and distributors follow the procedures and price notifications.

The directive came following an almost 100 per cent surge in liquefied petroleum gas prices in the market. LPG prices have increased from about Rs120 a kg a few months ago to Rs200 and in some hilly areas to Rs250 with the advent of winter.

At a meeting between Ogra officials and representatives of LPG marketing companies on Wednes­day, Ogra also asked the marketing companies to increase their sale points or certified distributors to facilitate the end-users and also to publish their respective prices for the convenience of general public.

An Ogra spokesperson said that under the existing laws, the Ogra could not directly fix LPG prices owing to deregulation of LPG business, but it can still intervene and take action under licencing rules against the companies involved in black-marketing of the product.

The meeting also decided to launch a major campaign against decanting of LPG which was illegal. It asked both the LPG companies and the local administration to initiate an action in this regard.

The representatives of the LPG marketing companies told the Ogra that a sudden increase in the demand was being exploited by certain profiteers.

The spokesperson said the LPG marketing companies were warned of strict action against any defaults by them or their distributors. Repeated violations could result in maximum punishment that amounts to revocation of the licence of a marketing company.

He said the Ogra had already fined at least 17 LPG marketing companies over unfair practices. Moreover, inspection teams may make surprise visits to LPG marketing companies or their distributors.

To a question, the spokesperson said that Ogra cannot determine the price of the LPG as its business has been deregulated, but companies are supposed to notify their respective reasonable prices and distributors are supposed to follow them. A distributor can lose its dealership for overcharging.

LPG Distributors Association Chairman Irfan Khokhar said that Ogra had determined reasonable price of LPG at Rs95 per kg on the basis of declining prices in the international market, but it was surprising that domestic prices were substantially higher than international rates.

He said the marketing companies increased prices by Rs100 per kg in just 15 days, which was unfair.

Mr Khokhar urged the prime minister to intervene and activate the local authorities to take action against price violations because Ogra had failed to play a role to check prices.

Published in Dawn, December 25th, 2014