Consumers in Punjab have to pay an additional amount of Rs. 200 per kilogram compared to the notified price by the government of Liquefied Petroleum Gas. The increase in the price of LPG in Punjab has led to retail prices ranging from Rs. 480 per kilogram to Rs. 500 per kilogram, which is close to 60% higher than the fixed legal ceiling price of Rs. 308 per kilogram.
The problem hits hard in poor and middle-class neighborhoods where LPG is the main source of fuel for cooking. Those households which use gas cylinders suffer constant financial pressure without any end in sight.
Prices Are Increased Rs. 10–Rs. 20 Per Kg Every Day By Retailers
As stated by market sources, the retailers from different places in Lahore, Multan, Faisalabad, and Gujranwala are increasing LPG prices Rs. 10 to Rs. 20 per kilogram every day.
The LPG price hike in Punjab is indicative of an ongoing pattern in Pakistan’s energy industry wherein the disparity between the official rate and the rate on the streets increases dramatically in case of any disruption in supplies or spike in demand.
Fixed at Rs. 308/kg but No Enforcement
The federal government has made Rs. 308 the official rate per kg for LPG. However, there is no enforcement of this limit by retailers who flout it with impunity. There are no frequent inspections, and there is little penalty that affects the LPG companies and marketers who pass on the burden to end users.
ALSO READ: Pakistan Petrol Price Cut Exceeded Global Oil Fall, Minister Claims
Reasons for Supply Chain Failure on Consumers
There is a chain of producers, marketers, distributors, and dealers of LPG in Pakistan. In case there is any lack of regulation at a higher level, this tends to be quickly exploited at lower levels. This can be seen from the increase in the price of LPG in Punjab.
Petro Minister Swears at Hoarders
Minister for Petroleum and Natural Resources of Pakistan, Ali Pervaiz Malik, admitted the situation publicly. The minister also told his field officers to make strict measures against hoarding and profiteering behind the rise of LPG prices in Punjab.
Calls for Transparent System for LPG Price Monitoring Emerge
Consumer rights groups and energy experts call upon the government to take action beyond issuing warnings by putting in place a transparent system for LPG price monitoring.
The use of electronic price displays, random field visits, and public record of penalties imposed may together help put an end to the LPG price hike in Punjab.
The absence of structural change regarding LPG price monitoring and enforcement is likely to make each new disruption of supply lead to exploitation again and again, according to analysts.
Nayab Fatima is a media professional specializing in fact-based journalism, research, and analytical reporting on technology, telecom, aviation, and automobiles.
