KARACHI, June 26: The price of liquefied petroleum gas (LPG) has shot up to Rs50 per kg from Rs25 per kg a few days back due to its persistent shortage in the market.
Two days back, the LPG was available at Rs32 per kg but now vehicle owners are running from pillar to post to find the LPG even at Rs50 per kg.
Several LPG dealers in various areas have either closed their shops or sitting idle, saying that the supplies from the producers have virtually come to a standstill.
Rickshaw, taxi and some private car owners, who have switched over to cheaper source of fuel, are now facing problems to get the LPG even at the rate of Rs50 per kg since the shortage has gripped the market.
Refinery operators agreed that the market is under pressure and there exists acute shortage of the gas but this is not due to suspension of production of LPG by the refineries. They, however, attributed the price hike to rising demand since majority of rickshaw and taxi owners have shifted to cheaper mode of fuel following continuous rise in petroleum prices.
But surprisingly, the fare meters of these rickshaws and taxis are not in line with their low LPG consumption cost. Consumers are bound to take a costly ride and the competent authority is watching it as a silent spectator.
According to a refinery official, the government has discouraged the use of LPG in rickshaws and taxis owing to rising incident of blasts and casualties. As no practical action has been taken as yet, these vehicle owners continue to risk their own and commuters lives and opt for LPG.
People have gone crazy for the LPG in the last one year since its kit price and installation charges are phenomenally cheaper as compared to kit of compressed natural gas (CNG).
The sources said that the market is now swirling with the news that the refineries are expected to raise the prices of LPG from July 1, 2002 and dealers have already smelled the change and piled up huge stocks to make windfalls. These dealers are already enjoying free hand to charge prices on their own and that is why a disparity in LPG prices loom in almost every locality.
Local refineries produce over 1,000 tons a day of LPG in which the share of PARCO Refinery is 400 tons a day. Before the commencement of PARCO refinery, country’s LPG production was 500 tons a day.
The demand of LPG generally soars in northern areas and Punjab where people use it as an alternative source of fuel instead of coal, kerosene and wood in chillier weather. Surprisingly, LPG shortage has hit the markets in scorching heat and this might have occurred due to rising demand from rickshaws and taxi owners.
The total industrial sales of LPG in 2001 stood at 270,000 tons and officials in OMCs predict the sales to hover between 320,000-350,000 tons this year. The country has seen a mushroom growth in LPG marketing companies to 17 as compared to 10-12 about one and a half year back.
