LPG firms assured of equal quotas

Industry official says govt has agreed to end signature bonus for LPG supply

ISLAMABAD: The government has assured the LPG Industries Association of Pakistan that it will put an end to the signature bonus for securing liquefied petroleum gas (LPG) supply in an effort to provide a level playing field for all in the industry.

"For the first time in the history of the country, all LPG marketing companies will receive an equal volume of gas from public and private-sector LPG producing companies at the base price approved by the Oil and Gas Regulatory Authority (Ogra)," said LPG Industries Association of Pakistan Chairman Irfan Khokhar.

He was speaking at a press conference on Wednesday.

The association had been struggling to secure equal LPG quotas for the marketing companies for the past 12 years as previous governments were reluctant to take such a step.

However, Khokhar said, the current government decided to put in place an equal LPG distribution formula in a bid to provide a level playing field for all the gas marketing companies.

LPG terminal inaugurated in Gwadar

He revealed that in a meeting with Special Assistant to Prime Minister on Petroleum Nadeem Babar and Federal Energy Minister Omar Ayub Khan, the marketing companies were given an assurance that the government would ensure equal distribution of LPG volumes to all the companies.

He announced that the LPG Industries Association would ensure the availability of LPG to consumers at the base price approved by Ogra every month. "The initiative taken by the federal government will provide relief for the consumers with uninterrupted LPG supply at government-approved prices," he remarked.

Khokhar was of the view that with the elimination of industry cartel, more than 200 LPG marketing companies would be able to supply cheaper and affordable fuel to the consumers, particularly in the freezing winter.

He pointed out that the consumer price of LPG was Rs400 per kg last year but the fresh initiative would help control gas prices and provide relief for the consumers, particularly the people residing in far-off and mountainous regions.