Islamabad - Oil and Gas Regulatory Authority (OGRA) has swung into action after the complaints that LPG mafia has started selling the liquefied petroleum gas on an exorbitant price of up to 90 percent higher than OGRA’s determined rates for September.

LPG is being sold at Rs300 to Rs360 per kilogramme instead of Rs212 per kilogramme rates determined by OGRA for the month of September 2022, Chairman LPG Industries Association Erfan Khokhar claimed.

In the flood affected areas LPG is being sold up to Rs400 per kilogramme which is 90 percent higher than the OGRA’s determined rate, he added. 

Taking notice of the development, OGRA has written letters to all the chief secretaries of the provinces and the chief commissioner Islamabad to ensure the compliance of OGRA’s notified price of LPG for the ongoing month. The maximum selling price of LPG for the month of September is Rs2,496.30 per 11.8 kilogramme cylinder. 

The letter quoting Rule 18 (3) of LPG Rules, 2001 said: “Price of LPG base-stock and LPG: - In case the prices of LPG base-stock or LPG so being charged by a licensee under sub-rule (1 & 2) are over and above the notified price of the authority, the authority in public interest shall intervene and shall also involve the local administration to ensure punitive action against the defaulting licensees.”

“In pursuance of Rule-18 (3) of LPG (Production & Distribution) Rules, 2001, OGRA has to regulate and enforce the notified price of LPG with the help of local administration, who are already authorised under section 29 of OGRA Ordinance 2002 to take action against overpricing of LPG,” the letter maintained. 

In view of the current complaints and reports of price hike/ overcharging of LPG, the provincial governments are requested to ensure the notified LPG prices at the premises of LPG storage and filling plants and LPG distributors and to initiate action against profiteers under the above stated LPG (Production and Distribution) Rules, 2001, Petroleum Products (Petroleum levy) Ordinance, 1961, Price Control and Prevention of Profiteering and Hoarding Act, 1977, PPC, 1860, and any other applicable laws in the best interest of the general public. LPG plants and distributors are required to clearly display the LPG selling price on gate passes/ receipts, for convenience of general public. Expressing concern over the high prices of LPG, the LPG Industries Association has given a call for a nationwide strike.