The federal government has announced a significant increase in the price of Liquefied Petroleum Gas (LPG) for the month of December, adding further strain to household budgets across Pakistan. However, the official notification seems to have little impact on the ground, as retailers persistently charge consumers above the government-mandated rate.
Official Price Hike for December
According to the latest notification issued by the Oil and Gas Regulatory Authority (OGRA), the price of LPG has been raised by Rs7.39 per kilogram for the current month. This adjustment sets the new official price of LPG at Rs259.19 per kg. Consequently, the cost of a standard domestic cylinder, which typically holds 11.8 kg of gas, has increased by approximately Rs87. The new price for a full domestic cylinder now stands at an official Rs3,058.
The price revision is primarily attributed to changes in the international market and the valuation of the Pakistani rupee. OGRA routinely sets these prices at the start of each month based on a prescribed formula that considers global propane and butane prices and the exchange rate.
Widespread Defiance by Retailers
Despite the clear directive from OGRA, a widespread practice of overcharging continues unabated in markets throughout the country. Reports from various cities and towns indicate that LPG distributors and retailers are openly flouting the official rate. Consumers are being compelled to pay significantly more than the notified price of Rs259.19 per kg.
This market malpractice is not a new phenomenon but has become a persistent issue, eroding the effectiveness of government price controls. The gap between the official rate and the market rate places an undue financial burden on millions of households and businesses that rely on LPG for cooking and heating, especially in areas without a natural gas supply.
Impact on Consumers and Call for Action
The continuous overcharging by retailers negates the government's regulatory mechanism and directly impacts the cost of living for ordinary citizens. With winter setting in, the demand for LPG typically rises, making this issue even more critical for low and middle-income families.
The situation highlights a significant enforcement gap. While OGRA sets the price, the onus of ensuring compliance at the retail level often falls on provincial and district administrations. The prevalent defiance suggests a lack of effective monitoring and punitive action against violators.
Consumer advocacy groups have repeatedly called for stricter market checks and severe penalties for retailers who do not adhere to the official pricing. They argue that without consistent and visible enforcement, such price notifications remain merely symbolic, failing to provide the intended relief to the public.
As it stands, Pakistani consumers are caught between a formal price hike and an informal, even higher, market rate, exacerbating the ongoing economic challenges faced by the nation.
