KARACHI, June 11: The price of liquefied petroleum gas (LPG) has touched Rs33 per kg from Rs26-27 per kg in just three days as a result of increase in price by some marketing companies followed by non-supply from one of the local sources.
In some areas — retailers are demanding Rs35-37 per kg without giving any cogent reason of price hike.
Refinery operators say they have not increased the prices since April, and there must some other reason of price hike in LPG. “Our ex-refinery prices are still intact ranging between Rs14,700 and Rs15,200 per ton,” officials in local refineries said.
Market sources said that suspension of supplies from Dhodak oilfield in the last few days on account of repair and maintenance had caused supply problems in the markets. Dhodak is the main producer of LPG after Pak Arab Refinery Limited (PARCO).
The sources said some companies had also increased the prices of gas by Rs30-40 per 11.8 kg cylinders to Rs325-330 from Rs290- 300, thus resulting in price flare-up of LPG gas at retail level.
It has been observed that LPG demand usually remains slack in summer season. LPG demand has been gradually going up for the last two years owing to switching over of sizable number of rickshaws and taxis to cheaper source of fuel from petrol.
Price flare-up is mainly witnessed in winter season when demand outstrips supplies in northern and rural areas where people use it as a fuel for burning purpose instead of kerosene oil.
A refinery official said production of LPG in Pakistan stood at 1,000 tons a day or 325,000-350,000 tons per annum. The share of PARCO stands at 45 per cent alone. PRL, NRL and Attock Refinery Limited (ARL) produce 50 tons, 35 tons and 15-20 tons of LPG a day, respectively, while Dhodak produces 190 tons a day and the rest of the quantity arrives through OGDCL, Pakistan Petroleum Limited (PPL) and other oilfields.
He said in case of any shortage of gas — some two to three companies import the gas but the quantity is very negligible.
There are 29 LPG companies, which are engaged in marketing the indigenous and imported gas. The government had deregulated the allocation and price of LPG from September 15, 2000, with a view to keeping the price at a reasonable level, he added.
Despite the fact that the government has prohibited the use of LPG in vehicles — rickshaw and taxi owners continue to enjoy cheaper source of fuel as there has been no authority to check the illegal use of gas in vehicles. Rickshaw and taxi owners have gone wild for LPG owing to low cost of kits ranging between Rs2,000 and Rs4,000 as compared to CNG kit of Rs20,000-25,000.
The government is yet to take any action on the use of uncertified and below standard cylinders. Rickshaw is considered as most dangerous vehicle in which LPG cylander is fitted just under the passengers’ seat, thus exposing the commuters to the potential threat of explosion all time.
The city has seen a mushroom growth of LPG shops, and a sizable number of LPG cylinders are lying outside the shops like flour and rice bags, thus posing danger to the pedestrians.
