LAHORE: The Oil and Gas Regulatory Authority (OGRA) has reportedly held back action against companies accused of overcharging for liquefied petroleum gas (LPG), amid concerns that an industry-wide strike could worsen Pakistan’s energy crisis and push prices beyond Rs700.
According to a report by Express News, LPG suppliers have been selling the fuel at arbitrary prices for the past five to six days, while regulatory authorities have yet to initiate enforcement action against those allegedly violating official rates.
A senior OGRA official, speaking on condition of anonymity, disclosed that high-level meetings had been held over the past several days to assess the situation, with representatives of multiple government departments participating.
The official said the sudden increase in LPG prices was linked to the closure of the Taftan border, which disrupted supplies at a time when Pakistan depends heavily on imported LPG.
According to the official, approximately 70 percent of the country’s LPG requirements are met through imports, while domestic production accounts for the remaining 30 percent.
OGRA fears LPG companies could shut down plants
The official claimed that immediate action against LPG companies could prompt operators to shut down their plants and launch a strike, potentially joined by retailers and distributors.
Such a shutdown could further disrupt fuel supplies and intensify the existing energy shortage, with LPG prices potentially exceeding Rs700.
The official said Federal Petroleum Minister Ali Pervaiz Malik had been informed of the situation and that a decision had been taken to temporarily avoid enforcement action.
Authorities had reportedly prepared lists of companies and individuals suspected of overcharging.
Under the proposed enforcement plan, OGRA was expected to take action against LPG companies at their plants, while provincial district administrations would target large-scale hoarding.
However, the proposed operations were reportedly postponed because of concerns that an industry shutdown could aggravate the energy crisis.
LPG distributors urge government intervention
LPG Distributors Association Chairman Irfan Khokhar called on the government to take immediate control of the situation, warning that conditions could deteriorate further without intervention.
When contacted, an OGRA spokesperson acknowledged difficulties caused by the Taftan border closure and said efforts were underway to address the situation.
The spokesperson expressed hope that the supply-related problems would be brought under control soon.
The reported possibility of LPG prices exceeding Rs700 remains a warning attributed to the unnamed official rather than an announced or officially approved price.