Lahore, January 11, 2018 (PPI-OT):Chairman/Founder of LPG Industries Association of Pakistan (LPG Chamber of Pakistan) and Chairman LPG Distributors Association Pakistan, Mr. Irfan Khokhar told that LPG importers have made rock solid decision to stop LPG import on February 1st, 2018. Approximately 50000 to 60000 MT LPG is required per month in next 2 months of winters. He said, “Daily 2000MT local LPG production is not much as compared to daily consumption of 5000MT for which 3000MT LPG have to be imported to fill in the gap”. LPG price will shoot up to sky if LPG Import stops. Adding to this, Irfan Khokhar said, LPG will be hardly available at Rs. 300/kg and Domestic Cylinder at Rs. 4000. In 2014 to fill the demand and supply gap, 62117MT was imported which increased to 245578MT in 2015, 513788MT in 2016 and 369877MT in 10 months of 2017.
He further told that only 30 LPG marketing companies have local LPG quota while other 114 out of 144 LPG Marketing Companies are totally depending on LPG Import. Levy Tax on local LPG production was supposed to end the LPG consumer price difference between local and imported LPG instead after imposition of Regulatory Duty on LPG import, this price difference have increased. Up to Rs. 15/kg, local quota holders are filling their pockets with ill money and earning Rs. 30 million on daily basis.
A meeting on instructions of Prime Minister of Pakistan was held in Ministry for Petroleum and Natural Resources which was attended by major local LPG producers and LPG importers. The point was raised about the neglecting of LPG Policy to provide poor LPG Consumers with economic substitute of Petrol/Diesel. LPG Importers said that Rs. 4600/MT and 5.5% advance tax is killing LPG import and would be responsible for ending LPG imports. It was also informed that PARCO violating PPRA rules only allotted the local LPG quota to their favourite companies without bidding. Petroleum Division officials promised to look in to this matter and summary will be sent to Prime Minister for final decision. LPG Distributors will soon announce their reaction in this regards.
For more information, contact:
LPG Industries Association of Pakistan
2-C, Block C, Model Town, Lahore, Pakistan
Cell: +92-300-8451211, +92-302-8451211
Category: General Business News