Ajman, September 07: Ajman Municipality warned LPG cylinder distribution companies against exploiting the rise in demand for fuel during the holy month of Ramadan by increasing the selling price of the gas cylinders, following a large number of complaints from public.
Mohamed Ali Al Marzouki, Director of the License Department at Ajman Municipality and Planning Directorate, said the errant companies will have to pay a hefty fine of Dh100,000 if found violating the price fixed by the municipality,
“Many gas cylinder companies take advantage of any occasion and particularly the holy month of Ramadan in increasing their prices without knowing that we are standing tough against any gas cylinder company found selling the cylinders at price higher than the specified value determined by Ajman Municipality,” he added.
According to a local order number (1) issued in 2000. Ajman Municipality is the authority concerned in determining the selling price and the size of the cooking gas cylinders.
Ajman Municipality has priced the small gas cylinder at Dh50, the Medium one at Dh75 and the large one at Dh150. Some gas companies were selling them to consumers at the rate of Dh75 for the small one, Dh100 for the medium one, and Dh200 for the big one.
Al Marzouki added that at a recent meeting with the owners of the gas distribution companies, issues like adherence to the stipulated pricing, safety measures while transporting the gas cylinders, were discussed.
“During the meeting we informed them strictly about their adherence to the stipulated pricing in order to avoid being fined Dh100,000 if found selling the cylinders at a higher price.
The gas companies were requested to place the pricing list provided by the Municipality on the vehicles used for distribution of cylinders.”
He added that a recent raid had resulted into fine against a gas company found selling gas cylinders at prices higher than those fixed. He also warned the companies from filling up the cooking gas in cylinders belonging to other companies.
Gashaw Pankar, a gas cylinder salesman admitted that he was charging Dh10 to Dh15 over the stipulated price in order to make a profit.
Bijit Mathew, manager of Al Injaz Gas, an LPG cylinder distributor in Ajman, said the hike in the prices of LPG has affected the distributors as well as the customers.
According to him, the prices of gas cylinders rose in Ajman due to the increase in the prices of oil and petroleum products.
He said that the rise in prices of LPG in the international market has reflected on the prices of cooking gas in Ajman and other emirates.
The truck drivers of the distribution companies are also clamouring for a hike in their salaries, Mathew added.
Mohammed Kamal, Manager of Al Bakht Gas, said the drivers were demanding a salary hike because of the hike in the cost of living in the region. “Besides, the prices of diesel needed for their trucks have also gone up.
The companies are forced to spend more money to operate and maintain the trucks.
As it is, we get make only a small profit compared to the companies distributing other consumer products,” he pointed out.
According to Rabab Badur, a housewife, the increase in gas prices upsets the household budget and forces them to use charcoal for cooking.
“We as consumers appreciate the municipality’s moves to stop greedy traders and distributors who exploit the occasion of the holy month to make more profit,” she said.
–Agencies