March 9, 2021: The government would finalize the new Liquefied Petroleum Gas (LPG) policy in consultation with all stakeholders aimed at streamlining the matters related to the commodity’s production, import, distribution and marketing.
“The industry concerned (LPGIA) to be taken into confidence before getting approval of the new LPG policy from the competent authority,” a senior official privy to petroleum sector developments said on Tuesday.
Accordingly, a consultation session would soon be held to remove concerns of the stakeholders and devise a more effective strategy for providing inexpensive gas to consumers and protecting rights of the business community associated with the industry.
He expressed confidence that the new policy would be beneficial for all stakeholders including consumers and marketing companies working in the LPG sector.
Meanwhile, Liquefied Petroleum Gas Industry Association (LPGIA) chairman Irfan Khokhar told APP that the association had called off its countrywide strike, scheduled on March 10, after the government assurance to review the proposal of imposing a tax on LPG import through land route.
He appreciated the government for taking on board the LPGIA and remedial measures to ensure the provision of environment-friendly fuel at a controlled rate especially in far-flung areas during the peak winter season.
The chairman said the government strategy had started yielding required results, which was evident from the fact that the per kilogram LPG was available in markets at Rs 30 less than the Oil and Gas Regulatory Authority’s prescribed rate of around Rs 160.
Expressing complete confidence in the government initiatives, Irfan Khokhar said the authorities concerned would take all possible measures to remove concerns of the association for the promotion of LPG industry.
According to an official document, around 769,589 tons of LPG is being consumed by domestic, commercial and industrial sectors on the annual basis.
During the last fiscal year, the domestic sector consumed 322,779 tons of LPG, commercial and industrial consumers utilized 348,518 and 98,292 tons respectively.
The all three-category consumers used 16,021 tons LPG in Islamabad, 459,026 tons in Punjab, 81,286 in Sindh, 72,997 tons in Khyber Pakhtunkhwa, 22,564 tons in Balochistan, 43,468 tons in Northern Areas, 26,087 in erstwhile Federal Administered Tribal Areas and 48,142 tons in Azad Jammu and Kashmir.
The government has set the target of producing 753,051 tons LPG through indigenous means and importing 317,263 tons during the current fiscal year. Around 76 per cent of the LPG consumed is met through local production, whereas the rest is imported.