ISLAMABAD, Pakistan (erb desk) - Consumers across Pakistan have allegedly paid more than Rs1.4 billion in excess charges for liquefied petroleum gas (LPG) over five days as market prices surged well above the rate set by the Oil and Gas Regulatory Authority (OGRA), according to industry representatives.
Irregularities in LPG pricing have prompted complaints from distributors and importers, who say regulatory authorities have yet to take effective action against suppliers allegedly selling the commodity at inflated rates.
Irfan Khokhar, chairman of the LPG Distributors Association, said daily LPG consumption in Pakistan had risen from between 60,000 and 65,000 kilogrammes to around 70,000 kilogrammes amid changing weather conditions.
He said OGRA had fixed the LPG price at Rs280 per kilogramme, but the commodity was being sold in the market for between Rs600 and Rs625 per kilogramme.
According to Khokhar, consumers were therefore paying around Rs320 more per kilogramme than the notified rate, resulting in excess payments exceeding Rs1.4 billion over five days. The figure is an industry estimate and has not been independently verified.
He alleged that the higher prices had persisted despite the presence of regulatory and enforcement agencies, adding that action against LPG plants and suppliers had remained limited.
Sources within OGRA reportedly said officials had held discussions over which authorities were responsible for enforcement. Under the reported regulatory framework, OGRA can take action against LPG marketing companies and plant operators.
Meanwhile, the Punjab Enforcement and Regulatory Authority (PERA) has reportedly taken action against more than 10 shopkeepers across Lahore and other parts of Punjab.
Shopkeepers said they were struggling to comply with the notified price because they were purchasing LPG from suppliers at substantially higher rates.
One shopkeeper's complaint, as reported by the industry, was that suppliers were charging around Rs550 per kilogramme, leaving retailers unable to sell at Rs280 without incurring losses. Retailers also alleged that enforcement teams had confiscated gas-filling equipment and imposed fines.
Sheikh Mukarram, president of the LPG Importers Association, attributed the price increase partly to the closure of the Taftan border, which he said had disrupted supplies and contributed to a shortage.
He also criticised OGRA's transportation-cost calculations, arguing that the regulator was using outdated freight rates dating back to 2010. According to him, transporting an LPG bowser currently costs between Rs50,000 and Rs60,000.
Mukarram said the association had repeatedly raised these concerns with OGRA's chairman and other senior officials but had not received a satisfactory response.
Khokhar said around 70% of Pakistan's LPG supply was imported, with the remaining 30% produced domestically. He called on the government to intervene urgently to stabilise prices and ensure consumers could obtain LPG at affordable rates.
The dispute highlights concerns over the gap between notified LPG prices and prevailing retail rates, as well as questions about supply disruptions, transportation costs and enforcement responsibilities.
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LPG prices, OGRA, Pakistan economy, gas shortage, LPG overpricing, Irfan Khokhar, Sheikh Mukarram, Taftan border, consumer prices, energy sector