LPGA demands transparency in reallocation of LPG quota

July 29, 2015 Off By Web Desk

Lahore: LPG Association of Pakistan has urged upon the Federal Petroleum Minister Shahid Khaqan Abbasi to look into and ensure complete transparency in the re-allocation of LPG quota’s by Pak-Arab Refinery Company (PARCO), saying that all allocations should be made through open tender systems.

In a statement issued here, Chairman LPG Association of Pakistan Farooq Iftikhar said that all marketing companies approved by OGRA should be given an equal opportunities to participate in the PARCO bids for LPG.

He said that at present, PARCO is producing 450 to 500 MT of LPG per day which was allocated to 16 marketing companies only. He said that allocation agreements has since expired but instead of calling open tenders, PARCO management is trying to strike a deal quietly in the next couple of days.

Farooq Iftikhar said that there are 94 marketing companies working across the country but PARCO is re-allocating LPG to only 16 Marketing companies through negotiations.

He said that all marketing companies should be provided a level playing field through open tender system as due to the present policy of PARCO’s management, majority of the marketing companies are left with no choice but to sell imported LPG.

Chairman LPG Association of Pakistan said that Ministry of Petroleum should look into the matters of PARCO and make its management to call open tenders for LPG as was done in the case of LPG allocations of GHBL, OGDC and other producers.

Farooq Iftikhar also urged the government to down the present high selling price of locally produce LPG and assist the government efforts in economic uplift of the country by providing cheap fuel to the masses.

He said that the locally produced LPG, presently being sold by the Producers at higher than the CP price, is injuring the economy as imported low quality gas is making its way into the country in a big way thus harming the local producers and the national exchequer. FBR must ensure that no extra LPG is imported in excess of local demand as valuable foreign exchange is wasted besides damage to local production.

“We strongly voice our concern at the Government’s complete silence despite our repeated protests”.