Federal Minister for Privatisation Syed Naved Qamar said on Thursday that the country was facing a challenge of widening gap between supply and demand of LPG due to decline in local production. The Minister stated this while addressing to the 5th Annual Public Conference of the LPG Association of Pakistan here.
He said that despite government efforts to enhance local production of LPG in the country, decline in LPG production had been observed compared to last year. "Main reason of declining LPG production is depleting fields and the non-augmentation of additional production," Qamar said adding that LPG production would increase substantially by 2012.
Though the LPG constitutes about one percent of the energy mix of the country but it is very important because it brings hope to those who are not privileged to receive natural gas facility. The Minister also assured the stakeholders to take appropriate steps to discourage smuggled sub-standard LPG from Iran. He also stressed for ensuring safety standards of cylinders and other related equipments. "The market is open and the stakeholders have to adopt it, the Minister maintained.
Earlier Chairman LPG Association of Pakistan Iqbal Z Ahmed said though a lot of development had taken place in LPG sector including establishment of a single Autogas station in Sialkot. Main challenge for the sector was rising prices internationally and declining trend in local production. "We are self regulatory in safety standards and the government has to trust the industry", he added. The LPGAP Chairman further suggested the government to bring the entire supply chain including distributors in the ambit of regulation by OGRA.
The stakeholders in their presentations highlighted importance, challenges, and future plan for development of LPG sector. They suggested that frequent changes in rules and regulations by the government, OGRA and others badly affected the sector. There is an urgent need for consistent policy for long period of time to enable to adjust itself accordingly.
Chairman All Pakistan LPG Distributors Association Abdul Hadi Khan said that during the outgoing winter season the demand for LPG decreased to 1300 ton per day from usual winter demand of 2100-2200 tons due to higher increase in prices and as a reaction, a large number of people have give up use of LPG.
He demanded of the government to waive off 17 percent GST on import of LPG during October, November, December and January so that the consumers might get the LPG on lower prices. Fasih Ahmed Director Associated Group, Jamal Akbar Ansari, Chairman Akbar Associates, Belal Jabbar, Mujatab Hameed, Emran Jamli, Saif Ahmed, A Baist Landi Renzo Pakistan, Saif Asif, Hassan Shahid, Bushra Aitezaz and other experts delivered speeches and presentations.
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