Islamabad, January 10, 2018 (PPI-OT):The LPG shortage crisis is on the cards as importers of LPG on Tuesday threatened to suspend import of LPG from next month in case government does not withdraw regulatory duty and advance tax. The government had imposed petroleum levy on locally produced LPG. However, meanwhile, the government also imposed regulatory duty on LPG imports equal to petroleum levy on locally produced LPG which had resulted in widening price difference making imports unfeasible.

Following direction of Prime Minister Shahid Khaqan Abbasi, a meeting was held in Petroleum Division to address the concerns of importers here on Tuesday. The meeting was attended by local producers and importers.

During the meeting, it was informed that the imposition of regulatory duty on imported LPG had led to killing the spirit of LPG Policy approved by the present government to bridge price difference between local and imported LPG. It was further informed that purpose of imposition of petroleum levy on locally produced LPG was to bridge the price difference between local and imported LPG.

But the government had also imposed regulatory duty on imported LPG at the same time which also led to widening gap between the prices of local and imported LPG making the imports unfeasible. Importers demanded to withdraw regulatory duty on imported LPG and 5.5 per cent advance tax for smooth supply of imports to meet the local demand. At present, there is no advance tax on locally produced LPG.

While talking to journalists after meeting along with importers of LPG, chairman All Pakistan LPG Distributors Association Irfan Khokhar said that imports of LPG would be suspended from February 1 if government does not withdraw regulatory duty and advance tax on LPG imports. He said that there was a price difference of Rs 15 per kg between locally and imported LPG which had created monopoly of local LPG producers. In this way, he said that local producers were minting Rs 30 million daily from the consumers.

He said that local LPG producers had created monopoly on LPG quotas and there were 146 LPG marketing companies but only 30 companies had local LPG quota. He said that Pak Arab Refinery (Parco) was involved in allocating LPG quota to their blue eyed without inviting bids which was in violation of PPRA rules. He further said that during the meeting, officials of petroleum division had assured to conduct inquiry.

He said that importers would submit presentation to the petroleum division on Wednesday (today) regarding price difference with evidence. Local producers had also submitted report and petroleum division would send its working to Prime Minister to find out the solution.

For more information, contact:
Head Office,
All Pakistan LPG Distributors Association
House No. 2-B, Ground Floor, Block 6,
Shahrah-e-Faisal, P.E.C.H.S., Karachi, Pakistan
Tel: +92-21-4546619, 4521793
Fax: +92-21-4521361
Website: www.lpgassociation.com

Lahore, September 02, 2015 (PPI-OT):Chairman LPG Association of Pakistan, Farooq Iftikhar has blamed LPG producers for the high price of the commodity in the country. The Government of Pakistan through its holdings in Oil and Gas Development Company, Pak Arab Refinery, Pakistan Petroleum Limited and Pakistan Refinery is the largest Producer of LPG in the country and accounts for approximately 70% of the country’s LPG production.

In an effort to encourage imports and allow a level playing field to importers the Government in Dec 2006 had allowed LPG Producers to set their prices to a maximum of Saudi ARAMCO CP (the international benchmark for LPG prices). However since Dec 2014, following the decline in international LPG prices, LPG producers have stubbornly maintained higher prices.

“August marks the 9th consecutive month where LPG producers have maintained their prices higher than Saudi ARAMCO Contract Price” said Mr. Iftikhar. “Resultantly the consumer is paying a far higher price for the product than what has been previously allowed.” “The current Producer Prices at Rs. 45,000 per MT (exclusive of taxes) are Rs. 6,400 per MT higher than the Saudi ARAMCO CP which is at Rs. 38,600 per MT,” stated Mr. Iftikhar.

In addition the Government is proposing to impose a levy on locally produced LPG, which will further increase its price by Rs. 11,000 per MT, making the commodity nearly 40% more expensive than imports. At a time when the crash in crude oil prices has significantly reduced global LPG prices, the Government in Pakistan is pushing for increasing local prices.

The LPG Association of Pakistan has repeatedly requested the Ministry of Petroleum and the LPG Producers for a reduction in price, but to no avail. “As a last resort we have written to the OGRA to intervene in the matter as the issue is related to prices and a violation of the Government’s policy of equating local prices to a maximum of Saudi ARAMCO CP”. Sources have revealed to this scribe that that OGRA has sought comments from LPG Producers by 31st August on the issue of charging prices higher than Saudi ARAMCO CP.

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

Lahore, August 25, 2015 (PPI-OT): LPG Association of Pakistan has demanded of the government to bring down the input cost of the local LPG producers who are suffering hard due to import and smuggling of adulterated and dangerous LPG. In a statement issued here Tuesday, Chairman of the LPG Association of Pakistan Farooq Iftikhar said that local producers of LPG are in deep trouble because of high input cost while adulterated and dangerous LPG is being smuggled and sold openly.

Chairman LPGA said that LPG Association of Pakistan had for the last many months been calling on the concerned government circles to take measures for the promotion of alternate fuels like LPG that would certainly cut the burden on conventional fuel sector. He urged the government to bring down the LPG producer’s price through a policy framework in line with LPG Policy.

Mr. Farooq Iftikhar said that it was an ample proof of LPG Association of Pakistan’s commitment with the country that despite severe crisis of petrol in the country, sufficient LPG was available. LPGAP wants to emphasize on the Government that countries like Pakistan would be adversely affected if OPEC Countries reduce oil production, as such Government should encourage LPG as alternate fuel for the automobile sector on priority so that dependence on conventional fuel, like petrol and diesel is reduced.

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

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

The post Liquefied Petroleum Gas Association of Pakistan sends Save Our Soul call to government appeared first on AsiaNet-Pakistan.

Lahore, February 26, 2015 (PPI-OT): LPG Association of Pakistan (LPGAP) has demanded of the Government to take cognizance of the import of low quality, spurious and adulterated LPG to avoid any untoward incident. The Chairman LPGAP Mr. Farooq Iftikhar said that some unscrupulous importers are selling low quality and cheap LPG and playing with the lives of the masses besides wasting valuable foreign exchange and loss of tax revenue for the Government.

Why is this happening? Today a lot of low quality LPG is in the market because of massive fall in International price of Petroleum Product and the Government’s reluctance to match prices of the local product accordingly.

Today, The imported product, when imported thorough sea routes, costs around Rs. 67000/- per MT whereas the price of local product varies from 72000/- to 77000/- per MT. 16000 MT of imported LPG came into Pakistan in February and around 6000 MT more is expected within a week. Local producer’s which mainly constitutes of Government controlled Enterprises must respond to this changing scenario on priority as lifting of LPG is adversely affected.

The internationally declining trend according to any forecast is there for the next 2-3 years and the Govt. must reduce the prices immediately as the storage capacity in the Country is limited to cut its losses. The LPGAP which represents LPG marketing companies request the Ministry of Petroleum and OGRA to take immediate notice of the situation and take urgent remedial measures. It is a matter of grave concern for both local LPG Industry and the consumers.

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

The post Liquefied Petroleum Gas Association of Pakistan demands Government to take cognizance of import of low quality, spurious and adulterated LPG to avoid any untoward incident appeared first on AsiaNet-Pakistan.