close
Advertisement
Can't connect right now! retry

add The News to homescreen

tap to bring up your browser menu and select 'Add to homescreen' to pin the The News web app

Got it!

add The News to homescreen

tap to bring up your browser menu and select 'Add to homescreen' to pin the The News web app

Got it!
August 11, 2020

‘LPG production must restart’

Business

August 11, 2020

LAHORE: The Senate Standing Committee on Petroleum has directed Sui Southern Gas Company (SSGC) to review its decision and restart local LPG production in the national interest. SSGC, that stopped gas supplies to Jamshoro Joint Venture Limited (JJVL) on June 21, 2020, was ordered by the Senate committee to review its decision on Monday.

“SSGC must review and revisit its decision keeping in mind the full utilisation of national assets and local resources in the national interest,” Senate Standing Committee Chairman Mohsin Aziz said.SSGC has generated Rs84 billion in revenues from JJVL since its inception and a profit of over Rs29 billion without any investment on the part of the gas utility company, JJVL Director Fasih Ahmed told the committee. “JJVL serves the energy requirements of 750,000 households nationwide and has created 5,000 direct and indirect jobs,” he said. Committee member Senator Taj Afridi strongly urged restarting local LPG production at JJVL to improve the investment climate in the country and to ensure energy security.

He said sales tax was 17 percent on local LPG production and 10 percent on LPG imports, and asked the Ministry of Energy to provide a level playing field to all investors. Ministry of Energy (Petroleum Division) Federal Secretary Asad Hayauddin said the Federal Cabinet’s Economic Coordination Committee would be reviewing the JJVL on Wednesday. He added that disparities between the pricing structure of local LPG production and LPG imports would be ironed out by a special committee led by the Planning Commission’s deputy chairman.