OGRA seeks data from LPG producers, companies to determine commodity price

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ISLAMABAD, March 10 (APP): The Oil and Gas Regulatory Authority (OGRA) Friday again directed Liqueified Petroleum Gas (LPG) producers and marketing companies to submit the required data so that the commodity price could be determined.
A spokesman of the authority, in a statement, said the data would help determine the price after comparing demand, supply and production of the LPG.
He said selling LPG to consumers on exhorbitant rates was not appropriate.
The spokesman rejected the claim of LPG companies regarding wrong fixation of LPG price.
He said the reasonability of locally produced LPG price had been worked out based on the rationale and reasonability at each level of supply.
“As per Federal Government Policy, LPG is a poor man’s fuel, thus, the demand for increase the LPG price for domestic sector is neither justified nor consistent with the said policy.”
The spokesman said the Council of Common Interests (CCI) had approved the Liquefied Petroleum Gas Production and Distribution Policy 2016 to ensure availablity for domestic consumers at an affordable price and avoid frequent price fluctuations.
He said the policy clearly demarcated parameters for locally produced LPG and LPG imports in terms of supply, consumption, pricing and other commercial consideration.
The LPG import has been specified for “Industrial and Automobile Sector” and a deregulated activity.
OGRA has also estimated that the monthly average LPG local production is around 55000-60000 M.Tons and is sufficient to meet the domestic sector demand. “This demand, however, is volatile and fluctuates with respect to weather conditions and market trends.”