The Oil and Gas Regulatory Authority (OGRA) has announced an increase in the price of liquefied petroleum gas (LPG) by Rs 1 per kilogram for February 2024. This adjustment translates to a rise of Rs. 14 for domestic cylinders and Rs. 53 for commercial cylinders. Consequently, the price of LPG will now stand at Rs 257 per kilogram, with domestic cylinders priced at Rs. 3026 and commercial cylinders at Rs. 11695 in the open market.
OGRA attributes this increase to the fluctuating Saudi Aramco-CP and US dollar exchange rates, with the former rising by 1.6% compared to the previous month. Despite a 1% decrease in the average dollar exchange rate, the consumer price of LPG has risen by Rs. 13.76 per 11.8 kg cylinder, amounting to a 0.45% increase per kilogram.
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However, the Chairman of the LPG Distributors Association, Irfan Khokhar, has expressed concern over the widespread unavailability of LPG at official prices throughout the country, including Lahore. He accuses the LPG mafia and marketing companies of exploiting the inflation-hit populace by selling LPG at inflated prices well above the government-set rate. This situation, he contends, has persisted for three months, with regulatory bodies like OGRA remaining passive observers.
Khokhar highlights the adverse impact of high LPG costs on both rural and urban areas, making it increasingly challenging for people to afford cooking essentials. Despite OGRA’s efforts to regulate prices, the ground reality paints a different picture, with LPG being sold at Rs. 282 per kilogram, significantly higher than the official rate, exacerbating the burden on consumers already grappling with rising living costs.