Lahore—LPG Association of Pakistan has declared that marketing companies are not responsible for LPG price hike. A spokesman of LPG Association of Pakistan said here Friday that numerous factors are responsible for the increase of LPG prices. Substantial profiteering by importers of LPG, Governments reluctance to bring locally produced LPG prices to low level & dealers are mainly responsible for this surge in prices, he added. He said that Business of LPG supply is conducted by LPG Marketing Companies as a social service to the Community, in areas where the National Gas Transmission Companies has failed to provide piped natural gas.
He said that not allowing free use of LPG as alternate fuel for Commercial Transport vehicles, Government has increased dependence on costly imported fuels, besides creating pollution in major cities. Burden on National exchequer of unwanted imports must also be of concern for the Ministry of Finance. LPGAP spokesman said that huge investment has been made in LPG sector of Pakistan by the private sector which needs to be protected by favorable policies of the Government.
Today most of the LPG Marketing Companies are facing tremendous financial pressure because of unjustified glut in imports of low quality LPG because of Ministry of Petroleum & Natural resources & OGRA’s silence towards importers. He said that setting local LPG price at high under present circumstances, it has became very difficult for LPG Marketing Companies to run their businesses as they had suffered huge financial loss during the past many months. Closing of Marketing Companies businesses would not only be a big blow to the huge investment but thousands of families would be deprived of their livelihood.
The spokesman said that there is a dire need to come out with a rationalized approach for the local LPG Industry. Ministry of Petroleum & Natural Resources & OGRA should implement the new LPG policy as announced by them some months ago. Presently the LPG Industry which besides contributing to National exchequer, also employs thousands of families is constantly losing money because of over imports and non implementation of new LPG Policy. High cost of local LPG, non-implementation of new LPG policy and continuous violation of OGRA rules by importers and some LPG Marketing Companies & dealers has pushed marketing companies towards closure by putting their huge investment at stake, LPGAP spokesman added.