Chairman LPGAP calls for supportive policies

Salim Ahmed


LPG Association of Pakistan (LPGAP) has urged the government to save local LPG marketing & storage companies from total collapse but formulating supportive policies for this important but crisis-hit sector.
The demand was raised at the meeting of LPG Association of Pakistan on Saturday. Association’s Chairman Farooq Iftikhar presided the meeting while a large number of members were present on the occasion. Participants of the meeting said that millions of people are attached with LPG marketing & storage companies while it is one of the major sources of revenue for the government but lack of proper planning and conducive policies has pushed this sector to the wall.
LPGAP’s Chief Farooq Iftikhar pointed out that LPG marketing & Storage companies are supplementing the government’s efforts for economic uplift of the country by investing billions of rupees but in reply they are getting nothing.
He said that imports and smuggled and of low quality and adulterated LPG is freely flowing o Pakistan. Majority of dealers are storing this low quality and dangerous LPG because of high profit margins that would be selling to the masses in the Holly month of Ramazan. He said that local producers of LPG have maintained high prices therefore, LPG Marketing Companies are facing huge difficulties to market their good quality LPG because most of the dealers are preferring smuggled or imported low quality LPG because of high profit margins. He said that importers also regularly import cheap LPG of High sulphur content through and route as well. Weight and quality misdeclaration of LPG coming through Taftan & Mand being sold in large quantity by mixing it with local/imported LPG.
Farooq Iftikhar further elaborated that presently importers selling LPG to dealers, decanters besides LPG Companies having no local allocation is between Rs.55000/= to Rs.57000 pet MT inclusive of all taxes, whereas locally produced LPG costs LPG Marketing Companies having allocation around Rs.60,000 to Rs.62,000 per MT, giving importers a very clear edge. Further LPG Marketing Companies have a sizeable establishment viz-a-viz importer, selling in bulk having negligible overheads”, Farooq Iftikhar added. He said that OGRA’s failure to control prices & non compliance by producers shows the helplessness and apathy of the regulator. Long term goal of importers successful as Ministry fails to install check including applying anti dumping duty to support local industry nor restricting imports by quantitative restriction, as spelt out in LPG 2017 policy but indirectly helping importers by maintaining complete silence.

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