• Ogra notifies about Rs15 per kg increase in gas price • Association warns of strike from Nov 16 over new LPG policy ISLAMABAD: As the government again notified an increase in the price of liquefied petroleum gas ( LPG) for November, its price in the open market is twice as high as the official rate amid a shortage of LPG due to the US-Iran war. I
• Ogra notifies about Rs15 per kg increase in gas price • Association warns of strike from Nov 16 over new LPG policy ISLAMABAD: As the government again notified an increase in the price of liquefied petroleum gas ( LPG) for November, its price in the open market is twice as high as the official rate amid a shortage of LPG due to the US-Iran war. I
• Ogra notifies about Rs15 per kg increase in gas price • Association warns of strike from Nov 16 more than new LPG policy ISLAMABAD: As the government again notified an increase in the price of liquefied petroleum gas ( LPG) for November, its price in the open market is twice as high as the source rate amid a shortage of LPG due to the US-Iran war. In a notification on Saturday, the Oil and Gas Regulatory Authority ( Ogra) notified Rs294,075 per tonne for November compared to Rs279,341 in the previous month. The development underscores the growing complexity of the situation.
Context and History
To put this in perspective, analysts point to a number of relevant factors.
Following the increase, the official retail rate of an 11.8 kg domestic cylinder of LPG is Rs3,470, up by Rs173.
The oil and gas regulator said that the LPG producer price was linked with Saudi Aramco-CP and the US dollar exchange rate.
Compounding the significance of these events, it noted that compared to the previous month, Saudi Aramco-CP had climbed by 6.47 per cent, while the average dollar exchange rate had slightly decreased by 0.12pc, resulting in an increase in the LPG consumer price by Rs14.73 per kg.
Reactions and Responses
The analysis from informed observers points to several important takeaways.
In the open market, LPG is selling for up to Rs630 per kg, while the company-operated franchises are charging up to Rs400 per kg, with various warning that the crisis would compound due to the gas shortage.
It has also emerged that “ The government has to make serious efforts to control market manipulations, ” Mr Khokhar added.
Reports further indicate that on the other hand, LPG marketing companies threatened to shut down their businesses from Nov 16 if the private sector was sidelined in the upcoming LPG policy.
Policy Implications
What this means for Americans — and for the country as a whole — is becoming clearer.
Pakistan LPG Marketers Association Chairman Ali Haider flagged that they will observe a strike from Nov 16 if the government implemented the policy.
Alongside the primary story, he said the government should not reverse the deregulation of LPG, adding that the gas was in short supply due to the Iran border closure.
What has become increasingly clear is that “ Out of roughly 1.3 million tonnes, only nearly 225,000 is imported from the Gulf, and that too has been mainly imported by the private sector, ” he said, adding that the ProGas terminal at Port Qasim was under the control of the Sui Southern Gas Company which “ imported LPG nearly seven months back ”.
As the story continues to develop, the association moreover wrote a letter to Petroleum Minister Ali Pervaiz Malik, stating the draft policy sent to the prime minister had no input from the private sector.
Of particular significance is the fact that “ In spite of billions of rupees collected in terms of PDL through this formula, the state-owned entities have failed to import LPG during these days, ” Mr Haider alleged.
The Road Ahead
A clearer picture is expected to emerge as more information comes to light in the days ahead. Until then, this development remains a pivotal point in an ongoing story with significant national implications.
• Ogra notifies about Rs15 per kg increase in gas price • Association warns of strike from Nov 16 more than new LPG policy ISLAMABAD: As the government again notified an increase in the price of liquefied petroleum gas ( LPG) for November, its price in the open market is twice as high as the source rate amid a shortage of LPG due to the US-Iran war. In a notification on Saturday, the Oil and Gas Regulatory Authority ( Ogra) notified Rs294,075 per tonne for November compared to Rs279,341 in the previous month. The development underscores the growing complexity of the situation.
Context and History
To put this in perspective, analysts point to a number of relevant factors.
Following the increase, the official retail rate of an 11.8 kg domestic cylinder of LPG is Rs3,470, up by Rs173.
The oil and gas regulator said that the LPG producer price was linked with Saudi Aramco-CP and the US dollar exchange rate.
Compounding the significance of these events, it noted that compared to the previous month, Saudi Aramco-CP had climbed by 6.47 per cent, while the average dollar exchange rate had slightly decreased by 0.12pc, resulting in an increase in the LPG consumer price by Rs14.73 per kg.
Reactions and Responses
The analysis from informed observers points to several important takeaways.
In the open market, LPG is selling for up to Rs630 per kg, while the company-operated franchises are charging up to Rs400 per kg, with various warning that the crisis would compound due to the gas shortage.
It has also emerged that “ The government has to make serious efforts to control market manipulations, ” Mr Khokhar added.
Reports further indicate that on the other hand, LPG marketing companies threatened to shut down their businesses from Nov 16 if the private sector was sidelined in the upcoming LPG policy.
Policy Implications
What this means for Americans — and for the country as a whole — is becoming clearer.
Pakistan LPG Marketers Association Chairman Ali Haider flagged that they will observe a strike from Nov 16 if the government implemented the policy.
Alongside the primary story, he said the government should not reverse the deregulation of LPG, adding that the gas was in short supply due to the Iran border closure.
What has become increasingly clear is that “ Out of roughly 1.3 million tonnes, only nearly 225,000 is imported from the Gulf, and that too has been mainly imported by the private sector, ” he said, adding that the ProGas terminal at Port Qasim was under the control of the Sui Southern Gas Company which “ imported LPG nearly seven months back ”.
As the story continues to develop, the association moreover wrote a letter to Petroleum Minister Ali Pervaiz Malik, stating the draft policy sent to the prime minister had no input from the private sector.
Of particular significance is the fact that “ In spite of billions of rupees collected in terms of PDL through this formula, the state-owned entities have failed to import LPG during these days, ” Mr Haider alleged.
The Road Ahead
A clearer picture is expected to emerge as more information comes to light in the days ahead. Until then, this development remains a pivotal point in an ongoing story with significant national implications.
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