Liquefied Petroleum Gas Association of Pakistan sends Save Our Soul call to government

Lahore, March 16, 2015 (PPI-OT): The LPG Association of Pakistan, while sending SOS call to Ministry of Finance, and Petroleum and Oil and Gas Regulatory Authority OGRA has feared shut down of local LPG industry if appropriate measures are not taken to control the import of low quality, spurious and adulterated LPG in the country.

In a statement issued here, Chairman LPG Association of Pakistan (LPGAP) Farooq Iftikhar said that Minister of Petroleum and Finance should take serious notice of the import and smuggling of adulterated and dangerous LPG as it was not only hampering the sale of locally produced LPG, but also causing huge loss to the national exchequers.

Farooq Iftikhar said that concerned authorities should take cognizance of rampant the import of low quality, spurious and adulterated LPG injurious to human health, and also to avoid any untoward incident from happening. There is no institution or law which ensure’s checking of LPG quality imported into the Country.

The Chairman LPGAP Mr. Farooq Iftikhar said that some unscrupulous importers are selling this cheap LPG and playing with the lives of the masses beside wasting valuable foreign exchange and loss of tax revenue to the Government.

He said that substantial quantity of low quality LPG is in the market because of huge fall in CP price of LPG and the Government’s delay to match price of the local product accordingly. However, we thank the Government for reducing its prices recently, but it must reduce price by another Rs. 5000 per MT to discourage low quality imports.

Farooq Iftikhar said that LPG imported thorough sea port costs Rs. 65000/- per MT approx. whereas the price of local product varies from 68000/- to 69000/- per MT. 16000 MT of LPG was imported into Pakistan in February and 10000 MT or more is expected within March.

Local producer’s, which are mostly under Government control, must respond to this change quickly, as delayed decision effects lifting of local LPG adversely. The world wide declining trend in prices, according to any forecast is there for the next 2-3 years and the Govt. must match the prices promptly as the storage capacity in the Country is also limited, to cut its losses.

He said that if import and smuggling of low quality adulterated LPG continues unabated, local producers of LPG will have to flare LPG or close production, which would surge the graph of unemployment and revenue losses.

LPGAP, is also deeply concerned over OGRA’s complete silence towards marketing companies involved in renting out their plants to dealers and investors causing huge loss to National exchequer. These marketing companies not only sell low quality LPG, but also blatantly flout all LPG rules of OGRA besides being involved in massive cross filling.

LPGAP, request the Ministry of Petroleum and OGRA to take urgent notice of the situation and take remedial measures. It is a matter of grave concern for local LPG Industry, the consumers and the Government.

For more information, contact:
All Pakistan LPG Distributors Association
House No. 2-B, Ground Floor, Block 6,
Shahrah-e-Faisal, P.E.C.H.S., Karachi, Sindh, Pakistan
Tel: +92(021) 4546619, 4521793
Fax: +92(021) 4521361

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