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The Oil and Gas Regulatory Authority (Ogra) finds itself powerless as liquefied petroleum gas (LPG) prices continue to surge, surpassing official rates by over Rs40 per kilogram as Ramadan approaches.
Ogra’s March set consumer prices for LPG at Rs257.59 per kilogram, translating to Rs3,040 for an 11.8kg domestic cylinder. However, ahead of Ramadan, LPG prices have escalated significantly, with the average market price reaching approximately Rs310 per kg nationwide and soaring to Rs360 per kg in mountainous regions like Murree, Galiyat, and parts of Khyber Pakhtunkhwa. In Gilgit-Baltistan, prices are even higher.
Domestic cylinder prices now range between Rs3,700 and Rs4,000 across various markets.
Industry experts attribute this price surge to prevailing political instability. Irfan Khokhar, chairman of the LPG Industries Association Pakistan, criticized importers for exploiting regulatory gaps to arbitrarily increase prices. He warned of an additional Rs30-40 per kg hike expected by Monday, as Ramadan draws nearer.
Khokhar lamented Ogra’s failure to enforce its own regulations, accusing importers of creating artificial shortages to justify price hikes. He highlighted the closure of the local LPG plant JJV three years ago, leaving the country dependent on importers. Khokhar expressed skepticism about Ogra’s effectiveness in confronting these challenges, asserting that the situation would persist until the country strengthens its local LPG production.