‘Country has sufficient LPG stock’

Distributor alleges gas is being hoarded to make quick buck

ISLAMABAD: Liquefied Petroleum Gas Distributors Association (LPGDA) Chairman Irfan Khokhar has claimed that the country has sufficient LPG stock to ensure a smooth supply in peak winter season, but he has urged the government to deal with the artificial shortage being created by some elements.

"Around 80% of LPG demand is met through domestic production and 20% from imports," he said while talking to APP. However, he alleged that LPG quota holders were hoarding the commodity to make a quick buck in the season.



He pointed out that LPG marketing companies and dealers were bound to sell the commodity at rates fixed by the Oil and Gas Regulatory Authority (Ogra), under which LPG would be sold at Rs113 per kg and Rs1,338.78 per domestic cylinder of 11.8 kg.

The association chairman alleged that a handful of local LPG marketing companies and dealers had increased prices on their own in an attempt to create artificial shortage and asked Ogra to conduct an audit of their accounts.

Replying to a question, he acknowledged that LPG demand had increased substantially in cold weather conditions but suggested that it did not point to shortages as around 50,000 tons were expected to be imported in the current month. "By December 14, 25,000 tons of LPG has already been imported," he claimed. "This month's total imports are expected to almost double compared to November."

Khokhar appreciated the Pakistan Tehreek-e-Insaf (PTI) government for abolishing the regulatory duty, reducing general sales tax on LPG imports and halving the commodity price within a narrow time frame.

“It is for the first time that LPG and LNG prices are almost the same; rather LPG is Rs4,000 cheaper compared to furnace oil,” he added.

Published in The Express Tribune, December 15^th, 2018.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.