ISLAMABAD – The LPG mafia has allegedly extracted between Rs60 to Rs70 billion from consumers by selling liquefied petroleum gas (LPG) at record-high prices, forcing inflation-hit citizens to pay more than Rs600 per kilogram against the official rate of Rs309 per kg.
According to reports, taking advantage of the energy crisis triggered by tensions between Iran and the United States, LPG dealers have been selling the commodity at arbitrary prices and continue to do so openly.
Data from the Pakistan LPG Distributors Association shows that more than 6 million kilograms of LPG are consumed daily in the country. While the Oil and Gas Regulatory Authority (OGRA) fixed the price at Rs309 per kg for June, LPG is not available anywhere at this rate. Instead, each plant, company, and retailer is charging its own price, leaving consumers with no choice but to buy the most expensive LPG in the country’s history.
A shopkeeper, Kashif, said that retailers are forced to sell LPG at higher rates because they themselves purchase it from plants at around Rs550 per kg. “If we get LPG at such high rates, how can we sell it at Rs309?” he questioned, adding that marketing companies and plant operators are supplying LPG at inflated prices while regulatory authorities have taken little action against them. He claimed that enforcement actions have largely targeted retailers, with heavy fines imposed on them.
He further alleged that plant operators do not issue receipts and refuse to provide LPG if a receipt is demanded. “We cannot keep our children hungry, and we cannot lay off our employees,” he said, questioning why the government has controlled petroleum prices but failed to regulate LPG prices.
With daily consumption exceeding 6 million kilograms, even a Rs300 per kg price translates into approximately Rs1.8 billion per day, or over Rs54.8 billion per month, being extracted from consumers without effective oversight.
