Consumers in Pakistan may have paid more than Rs. 1.4 billion above the official liquefied petroleum gas (LPG) price in just five days, according to the LPG Distributors Association, which has accused regulators of failing to stop widespread overcharging.
Irfan Khokhar, chairman of the LPG Distributors Association, said the Oil and Gas Regulatory Authority (OGRA) had fixed the LPG price at Rs. 280 per kilogram. However, consumers were reportedly paying between Rs. 600 and Rs. 625 per kilogram, around Rs. 320 above the notified rate.
Khokhar said daily LPG consumption had increased from 60,000 to 65,000 kilograms to approximately 70,000 kilograms as the weather changed. Based on the reported price gap and consumption, he estimated that consumers had paid more than Rs. 1.4 billion extra over five days.
OGRA Faces Questions Over LPG Overcharging
According to industry representatives, LPG continued to sell above the official price for five days without reported action against plant operators. Sources within OGRA said officials had spent two days discussing which authority was responsible for enforcement.
OGRA can take action against LPG marketing companies and plant operators. However, no plant had reportedly faced action at the time of the report.
In Punjab, enforcement teams had taken action against more than 10 shopkeepers, including in Lahore. Some retailers argued that they were purchasing LPG at around Rs. 550 per kilogram and could not sell it at the official rate of Rs. 280 without suffering losses.
Retailers also complained that enforcement teams were confiscating gas-filling equipment and imposing fines, prompting some to consider shutting down their businesses.
Importers Blame Shortages and Transport Costs
Sheikh Mukarram, president of the LPG Importers Association, attributed the price increase partly to the closure of the Taftan border, which he said had contributed to a shortage.
He also questioned OGRA’s transport cost calculations, arguing that the regulator was using transportation rates based on 2010 figures even though LPG tanker transport now cost between Rs. 50,000 and Rs. 60,000.
Mukarram said the association had repeatedly raised these concerns with OGRA Chairman and other senior officials but had received no meaningful response. He warned that businesses could come under further pressure if the issues remained unresolved.
Khokhar said imports account for around 70 percent of Pakistan’s LPG supply, while domestic production provides the remaining 30 percent. He urged the government to intervene to address the price gap and make LPG affordable for consumers.
The Rs. 1.4 billion estimate and allegations of regulatory inaction are based on statements by industry representatives and have not been independently verified.
