LAHORE: The LPG Association of Pakistan has requested the Ministry of Finance, Ministry of Petroleum, the Federal Board of Revenue and Oil and Gas Regulatory Authority to take urgent measures to address both import and smuggling of low quality, spurious and adulterated LPG in the country through land route of Taftan and Mand. It said that smuggling of LPG is not only hurting the local producers, but is also posing serious environmental and health risk Since there is no check on quality of LPG imported into the country through land routes of Taftan and Mand, the LPG import from these points is flooding the country.
The demand was raised at an emergent meeting of LPGAP presided by its Chairman Farooq Iftikhar. LPGAP members on the occasion stressed on taking immediate measures by the authorities to address the issue. Iftikhar, said that import and smuggling of low quality, spurious and adulterated LPG is not only affecting sale of local good quality LPG, but is also creating severe environmental and health issues amongst the low income citizens of the country.
He said that Minister of Petroleum & Ministry of Finance should take serious notice of import and smuggling of adulterated & dangerous LPG through land route as it was also causing financial loss to national exchequer.
Farooq Iftikhar said that curbing import of low quality, spurious and adulterated LPG injurious to human health will also help in lessening LPG related accidents from happening.
The Chairman LPGAP said that some unscrupulous importers are selling this cheap LPG to unregistered players who besides playing with the lives of the masses, and wasting valuable foreign exchange also cause substantial revenue loss to the Government. Substantial Import of LPG through land routes of low quality LPG, has taken place because of Government’s slackness to match price of the local product in light of huge fall in CP price of LPG promptly.
However, we thank the Government for reducing its prices recently, but it must reduce price further by another Rs. 5000 per MT to discourage low quality imports. Pricing should be such that only that quantity of LPG is imported as to cater to the difference between supply and demand and not be over imported and threaten the local producers. Current policy of allowing unhindered imports does not auger well for energy security of the Country & investment in local LPG production.
Farooq Iftikhar said that LPG imported thorough sea port costs Rs. 65000/- per MT approx. whereas the price of local product varies from Rs73000/- to Rs75000/- per MT. inclusive of Signature Bonus. 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 government 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.
PGAP, is also deeply concerned over OGRA’s weak handling of violating LPG marketing companies involved in renting out their plants to dealer’s and investors causing huge loss to National exchequer.
These marketing companies not only sell low quality LPG, but also blatantly flout all LPG Policy 2016 rules of MP&NR & OGRA besides being involved in massive cross filling.
LPGAP, requests the Ministry of Petroleum and OGRA to take urgent notice of the situation and take remedial measures as it is a matter of grave concern for local LPG Industry, the consumers and the government.
