Govt to formulate long-term LPG policy to restrict pipeline network extension

The production of indigenous gas has been static during the last decade resulting in shortages especially in winter season.

LAHORE (Dunya News) – Pakistan Tehreek-e-Insaf (PTI) led government on Thursday decided to formulate a long term Liquefied Petroleum Gas (LPG) policy to promote it in the country and restrict the extension in pipeline network.

Special Assistant to Prime Minister on Petroleum Division Nadeem Babar chaired a high level meeting where he expressed, “We cannot not extend the existing pipeline network and are going to make a policy by promoting the use of the LPG in all sectors in new long term LPG Policy.”

Local LPG producers, marketing companies, importers and distributors also attended the meeting.

The production of indigenous gas has been static during the last decade resulting in shortages especially in winter season.

The gas utilities-SNGPL and SSGC have been facing multibillion rupees gas losses due to extension in pipeline network. The use of LPG would also help control these losses as discussed in the meeting.

During the meeting, Babar asserted that government would form long term policy to promote the use of LPG in domestic sector. He said that existing tax regime on LPG would be continued and no new tax would be imposed on this sector to encourage imports to meet domestic demand.

He continued saying that government would not restore regulatory duty on import of LPG to encourage import to meet the growing demand of gas in the domestic sector.

The local producers of LPG have been pressing the government to restore the regulatory duty on import of LPG that would result in discouraging import of LPG. It would also result in creating shortage of LPG that would cause hiking prices of the product.

Following the elimination of regulatory duty on LPG imports, the flow of import had been increased that led to reduction in its prices making it affordable product the poor.

The founder Chairman LPG Industry Association Pakistan Irfan Khokhar briefed the meeting that LPG was cheaper a fuel by 65 per cent in auto sector compared to petroleum products and 20 per cent than CNG. He said that its use in auto sector would lead to reducing import bill.

The meeting was informed that during the last 10 months, LPG was available on lesser than Oil and Gas Regulatory Authority (OGRA) notified prices. LPG distributors and marketing companies demanded to remove the signature bonus being charged by local LPG producers. They said that it would reduce price of LPG to provide relief to the consumers.

Advisor to prime minister agreed to remove it in new LPG policy.