Pakistan's per capita LPG consumption around 2.6 kg

In the 4th International LPG Conference 2010, Sohail A Quraishi, CEO of SHV Energy Pakistan stated that currently, Pakistan's per capita LPG consumption is around 2.6 kg. This is one of the lowest in the world. Countries in Asia have a higher consumption like in India it is 7.3 kg, in Philippines it is 12.03 kg and in Thailand 28.8 kg.
LPG can play an effective role for Pakistan economy provided long-term and consistent policies are formulated to support this sector. Quraishi said during the last few years, LPG market has contracted by about 23 percent. To expand the market, increased supplies are required which can be obtained through increased imports.
The government needs to reduce GST on imports to make it viable and economic to do so. Increased LPG imports can offset any loss in revenue to the government. More imports will allow all LPG players to have adequate stock to sell and this competition will control prices through the inter-play of market forces.
He observed that the LPG use in the auto market has reduced as vehicles rapidly converted to CNG. To grow the LPG market, we now need to expand the domestic market, which requires investment in cylinders by all LPG marketing companies in line with their sales. Instead of investing in cylinders, some unscrupulous players indulge in cross filling of other companies' cylinders, which is not only unsafe but also illegal.
He said that to develop and grow industrial/commercial market, competitiveness with other fuels is required. This unfortunately does not exist and the government needs to address this issue. He advised Ogra to formulate policies that foster safety throughout the distribution chain.
Preventing cross-filling, decanting into smaller unsafe cylinders and ensuring that the consumer gets a safe and properly filled cylinder of the correct weight will allow companies to invest into their distribution networks. Concluding, he said LPG smuggling from Iran, Turkmenistan etc also needs to be controlled as substandard product is being brought in from there which is harmful for the health of consumers and damages the equipment it is used in.-PR