Private sector LPG producer Jamshoro Joint Venture Limited (JJVL) is reducing its price by about 12 percent for the month of April with effect from today (Friday) Business Recorder has learnt. Price reduction is being made in accordance with the official LPG Producer Pricing Policy 2007, and in view of international and local market dynamics.
"The Ex-JJVL LPG price during March was around Rs 42,392 per metric tonne (including taxes), and this will now be around Rs 37,532 per metric tonne (including taxes) from April 3, 2009, onwards," said a spokesman for JJVL. "Pricing for our product is done in strict accordance with the official policy framework and we expect this price reduction to be passed on to LPG end-consumers."
Chairman LPG Association of Pakistan (LPGAP) Iqbal .Z Ahmad said on Thursday that "Six leading entrepreneurs of Pakistan are visiting United States in the fourth week of April at the invitation of US Ambassador to Pakistan Anne Patterson, who has arranged meeting with prospective American investors."
Addressing the participants of programme on LPG and Energy sector, organised by Lahore Economic Journalists Association (LEJA) here at Lahore Chamber of Commerce and Industry (LCCI) he said the experience in energy and LPG sector had shown that foreigners particularly, Americans are keenly interested in investing in Pakistan despite threats of terror and law and order problems.
He said the power crisis in Pakistan can be solved because obtaining foreign investment in this regard is easier as the process of award of contract is transparent and is through open bidding. He said that the key to attracting investment is transparency. Pakistan he added has faced no problem in attracting investment in telecommunication, petroleum and energy sector as the institutions regulating these sectors are operating fairly and in crystal clear manner.
Answering a query on LPG affairs, Ahmad said that the LPG producers and marketing companies are strictly regulated by the Oil and Gas Regulatory Authority (OGRA). The producer price he added is fixed according to Aramco export price in Saudi Arabia. Similarly he added the rates of marketing companies are notified by OGRA. He said the weakest link in LPG trade is the distributors that are not regulated by any government agency. He said this creates problems for the consumers.
LPGAP spokesman Fasih Iqbal said the 50 per cent of the LPG in Pakistan is consumed in auto-sector. Yet he added there is no LGP gas filling station in the country. He said the filling station that has been completed since October last year at Lahore is still awaiting license from OGRA.
He said the government has finally realised the mistake and OGRA has invited tenders for producing 600 tons of LPG that was earlier being burnt in three OGDC gas fields. He said currently 95 percent of LPG consumed in the country is produced in Pakistan. Only 5 percent he added is imported.
After utilising the available LPG potential there would be no need to import LPG for quite some time he added. He said the cheapest and the fasted way to eliminate electricity shortage is through rental power plants. He said the tariff of the rental power plants is 30-40 per cent cheaper than the power plants run by independent power producers.
Comments
Comments are closed.