Action against cheap LPG imports urged

LAHORE: The LPG Association of Pakistan (LPGAP) has appealed to the ministry of petroleum and natural resources to take immediate notice of the plight of LPG marketing and storage companies that may close before Ramazan because of over imports of cheap LPG, a statement said on Thursday.

At an urgent meeting, LPG Association of Pakistan chairman Farooq Iftikhar said that the ministry of petroleum and natural resources must act now, otherwise investment of billions and employment of around 500,000 would be effected adversely. As over imports of low quality LPG continues in Pakistan, and majority of dealers are busy in hoarding imported cheap LPG for Ramazan and Eid, the LPG marketing companies are facing tremendous difficulties in selling local good quality LPG because of high price being maintained by LPG producers for reasons known to them, despite being in violation of the LPG Policy 2017.

“Presently, importers selling LPG to dealers, decanters besides LPG companies having no local allocation is between Rs55,000 to Rs57,000/MT inclusive of all taxes, whereas locally produced LPG costs LPG marketing companies having allocation around Rs60,000 to Rs62,000/MT, giving importers a very clear edge.”

“Further LPG marketing companies have a sizeable establishment vis-a-vis importer, selling in bulk having negligible overheads,” Iftikhar added.