Govt committed to promote LPG sector; reviews new licenses’ proposal

January 8, 2019: Cognizant of the prevailing energy situation in the country, the government is working on a strategy to promote the Liquefied Petroleum Gas (LPG) sector especially in the areas where infrastructure of gas utilities companies does not exist. 

“The government is well aware of situation and making all-out efforts for promotion of the LPG sector, for which is reviewing a proposal to grant new licenses,” official sources told.

Oil and Gas Regulatory Authority (OGRA), in annual development plan for the year 2018-19, had proposed to grant 33 licenses to promote LPG sector and ensure smooth supply of the commodity in far-flung areas especially during peak winter season.

 Among the proposal, as many as 25 licenses are for operation and marketing of LPG, storages and filling outlets, they said.

Meanwhile, LPG Distributors Association Chairman Irfan Khokhar appreciated the Pakistan Tehreek-e-Insaf (PTI) government for abolishing regulatory duty, reducing general sales tax on import of LPG and bringing down the commodity price by 50 percent in a short span of time.

He said around 80 percent demand of LPG is met through local production and 20 percent from the import.

Answering a question, he said no doubt the LPG demand had substantially increased in the cold weather conditions but it did not mean that there was any shortage like situation as sufficient quantity of LPG was being imported.

Irfan Khokhar claimed that the LPG is 60 per cent cheaper than petrol and diesel, while 15 percent inexpensive to Compressed Natural Gas.

Replying to another question, he said in routine around 90,000 mt LPG is consumed every month (including local and imported), but in winter season it was almost doubled for many reasons like load-management on networks of Sui Southern & Sui Northern Gas Pipelines Limited.

 (APP)