LAHORE: LPG sector of Pakistan should be treated as a major industry and should be given all necessary facilities as it is playing a major supportive role by providing cost effective and environment friendly fuel to the middle and lower class besides providing huge revenue to the government and employment to millions.
The demand was raised at a meeting of LPG Association of Pakistan (LPGAP) presided by its Chairman Farooq Iftikhar on Tuesday. Association members and stakeholders present in the meeting said that LPG sector of Pakistan is playing the role of unheralded soldier of economy and masses but is being ignored by the decision makers. He said that it is not only an affordable fuel but is also environment friendly. He said that use of LPG reduces air pollution by 90% in comparison to traditionally burnt biomass. He said that LPG burns almost completely, as such the proportion of pollutants are reduced. He said that if LPG is promoted as fuel, it would reduce the consumption of fossil fuel, coal and wood etc. He further stated that LPG stoves quickly supply heat and work more efficiently than stoves which burn biomass.
Higher Calorific value makes LPG a cost-competitive & efficient fuel for users who are not connected to the natural gas network. He said that LPG can be stored in cylinders or in special tanks placed along houses, farms, industrial complexes and the like, making it a highly flexible fuel that can be used for many purposes, Presently, 1.2 Million Metric Tonnes of LPG is onsumed in the country annually by over 10 million households, commercial units and small industries.
Farooq Iftikhar elaborated the fact that huge investment has been made in LPG sector of Pakistan which should be protected with favourable policies of the government but, current regulation of this sector has put most of the LPG marketing companies on the verge of closure because of thoughtless bidding for LPG quota, uncontrolled imports, and smuggling of hazardous and low quality LPG, while Ministry of Petroleum & Natural Resources and OGRA are playing the role of silent spectators due to reasons unknown, The upstream and downstream sector of LPG industry employ more than 150,000 workers and contribute more than 132 Billion rupees to GDP, Besides it massively contributes to national exchequer by paying over Rs 35 billion in taxes ( Sales, Income, Turnover, withholding excise and duties) annually.
The current circumstances, makes it very hard for most of LPG marketing companies to run their businesses as they are already bearing huge financial loss, If marketing companies close down, it would not only be a big blow to the huge investment but will also render hundreds of thousands of families deprived of their livelihood, besides huge loss to the natured exchequer, Chairman LPGAP added.
He said that the producer price of locally produced LPG currently is too high. As such it is depriving the common man of it buying power to use good quality LPG & is thus forced to use substandard LPG injuries to health.
Ministry of Petroleum & Natural Resources and OGRA must take measures to bring down the local producer’s input cost, as it would encouraged it use as fuel. Resultantly, burden on Natural Gas reserves would reduce, and making more gas available for power generation and the industrial sector.
He urged upon the Prime Minister Shahid Khaqan Abbasi and Ministry of Petroleum & Natural Resources to grant status of major industry to the LPG industry, and provide necessary facilities in the larger interest of economy and the masses.
