Call For Treating LPG Sector As Major Industry

LPG sector should be treated as a major industry and be given all necessary facilities as it is playing a major supportive role in providing cost effective and environment friendly fuel to the middle and lower class, besides providing huge revenue to the government and employment to millions.

The demand was raised at a meeting of Pakistan LPG Marketers Association presided over by its Chairman Farooq Iftikhar. Association members and stakeholders also attended the meeting.

Farooq Iftikhar said that LPG sector of Pakistan is playing the role of unheralded soldier of economy and masses but is being ignored by the decision makers. He said that it is not only an affordable fuel but also environment friendly.

He said the use of LPG reduces air pollution by 90% in comparison to traditionally burnt biomass. He said that LPG burns almost completely, as such the proportion of pollutants are reduced. He said that if LPG was promoted as fuel, it would reduce the consumption of fossil fuel, coal and wood etc. He added that LPG stoves quickly supply heat and work more efficiently than stoves which burn biomass.

Higher Calorific value makes LPG a cost-competitive & efficient fuel for users who are not connected to the natural gas network. He said that LPG could be stored in cylinders or in special tanks placed along houses, farms, industrial complexes and the like, making it a highly flexible fuel that can be used for many purposes, Presently, 1.2 million Metric Tonnes of LPG is consumed in the country annually by over 10 million households, commercial units and small industries.

Farooq Iftikhar elaborated the fact that huge investment has been made in LPG sector of Pakistan which should be protected with favourable policies of the government but, current regulation of this sector has put most of the LPG marketing companies on the verge of closure because of thoughtless bidding for LPG quota, uncontrolled imports, and smuggling of hazardous and low quality LPG.

The current circumstances, makes it very hard for most of LPG marketing companies to run their businesses as they are already bearing huge financial loss. If marketing companies close down, it would not only be a big blow to the huge investment but will also render hundreds of thousands of families deprived of their livelihood, besides huge loss to the national exchequer, Chairman LPGAP added.

He said the producer price of locally produced LPG currently is too high. As such it is depriving the common man of it buying power to use good quality LPG & is thus forced to use substandard LPG injuries to health.

Ministry of Petroleum & Natural Resources and OGRA must take measures to bring down the local producer’s input cost. Resultantly, burden on Natural Gas reserves would reduce, and making more gas available for power generation and the industrial sector.

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