Action against substandard cylinder-making mafia sought

‘3,240 people killed in blasts in last 11 years’

ISLAMABAD: All Pakistan Liquefied Petroleum Gas (LPG) Distribution Association on Thursday blamed politicians for backing the substandard gas cylinders manufacturers’ mafia that is causing frequent lethal accidents in the country.

In last 11 years, besides other casualties and losses to the properties, 3,240 people have been killed in the blasts of substandard gas cylinders in the country, the association’s chairman Irfan Khokhar said at a news conference here, asking the government to take action against such manufacturers within 10 days, otherwise, they will knock the door of the court of law and also stage a sit-in in front of the Oil and Gas regulatory Authority (Ogra) offices.

Khokhar said Ogra has issued licences to such manufacturers amid frequent accidents and killing of thousands of people. He said as the manufacturers are having political backing, no action has been taken against them so far. He said there are around 400 companies in Gujranwala mostly manufacturing substandard cylinders.

Khokhar alleged that some members of the Parliament are backing the mafia, and the government has been also dillydallying in legislation against such manufacturers. He said the objective of regulating the LPG will be attained the moment the gap between supply and demand of the gas is removed. He said the government could do this by facilitating the LPG import. He said if the government removes GST and 5.5 percent advance tax on LPG import, LPG will be available to consumer at less than Rs80/kg and cylinder at around 900 rupees.

The LPG Distribution Association chairman said that in 2016, 1.2 million tons of LPG was sold of which imported LPG was 532,918 metric tons and remaining was locally produced. During the year under review, Rs42 billion revenue was given to the government in form of taxes. He said if the government formulates LPG import policy, it could easily take control over its prices. “Besides making efforts to increase LPG production locally, if the government also facilitates its import then in year 2017, we hope to give Rs100 billion revenue to the government,” he said.

During 2014, total sale of LPG was 502,232 metric tons that included local production of 440,115 metric tons and imported 62,117 metric tons. In 2015, LPG sale was 875,087 metric tons (629,509 tons local and 245,578 tons imported) and in 2016, the sale increased to 1.182 million tons (648,802 tons local and 532,918 tons imported). In 2014, imported gas share in total sale was 12.36 percent, 2015 (28pc) and in 2016, it increased to 45 percent.

It was the imported gas that led the prices to go down; otherwise a few years back the gas price even touched Rs300/kg in winter. Now after the import increased, the prices have come down this winter to around Rs120/kg. The association’s chairman held the press conference after holding meeting with the Ogra authorities. 

In response to the press conference, Ogra spokesman said, “The meeting took place in cordial environment and the suggestions of LPG marketing and distribution association were well received. They have been informed that the authority will look into their recommendations and will take necessary steps/actions against manufacturers of substandard cylinders as and when required according to the provisions of Ogra Ordinance, requisite policy and rules.”