LPGAP for consistent policy for local LPG

APP - Liquefied Petroleum Gas Association of Pakistan (LPGAP) on Wednesday demanded the authorities concerned to formulate a consistent policy regarding pricing of local LPG as well as discourage undue advantage to its importers.

At an urgent meeting here, LPGAP Chairman Farooq Iftikhar said that low quality imported LPG was being sold out at cheaper rates, which caused heavy losses to LPG marketing companies selling good quality local LPG, citing that presently, there was a price difference of Rs 10,000 per MT between indigenous LPG and low quality imported LPG.

He claimed that marketing companies selling locally produced LPG were not even recovering their basic cost and it was getting difficult for them to continue their business. Currently, he added, over 155 LPG marketing companies were operating in Pakistan and around 40-50 having local allocation were bound to lift their allocation even if they had to sell below landed cost and bear huge loss. Local LPG industry that was instrumental in selling environment-friendly fuel was also solely responsible in bringing down massive trade deficit, a big economic challenge presently but the MP&NR policy on LPG was supporting importers only, he argued.

Farooq Iftikhar said that low priced inferior quality LPG was flooding local markets by way of mis-declaration of quantity smuggled through land routes by evading taxes, he said.

The LPGAP chairman said that auto sector and the Industry, which were previously using LPG was now shifting back to CNG because of availability of LNG and Natural Gas to them in adequate quantity and at less price.   Further due to global warming and change in climatic conditions coupled with increased availability of Natural and Liquefied Natural Gas (LNG), he mentioned, the demand of LPG had reduced considerably.