ISLAMABAD: M/s Vitol Trading Company, the world’s largest energy trading enterprise, has won tender from Pakistan’s government-owned LPG company.
The tender of LPG is important, particularly, given Pakistan’s historical reliance on LPG supplies from its sanctioned neighbouring country. These supplies often enter through illegal shipments and forged documents, making the government LPG company dependent on these cheaper but illicit products.
This dependence not only undermines real competition but also exposes Pakistan to significant risks and potential harassment during times of need.
Draft LPG policy aimed at boosting local production finalised
The participation and successful bid by ABC Trading Company signal a potential shift towards more legitimate and reliable sources of LPG for Pakistan.
By offering the lowest bid, Vitol Trading Company demonstrates that legal and reputable suppliers can compete effectively, providing Pakistan with a more stable and secure energy supply.
This development is expected to help alleviate the recurring energy crises that Pakistan faces, especially during the winter months when the demand for LPG surges.
Industry sources are of the view that the involvement of Vitol Trading Company is a promising step towards enhancing energy security and ensuring a more transparent and competitive market in Pakistan.
The tender could pave the way for increased participation from other reputable global suppliers, further strengthening Pakistan’s energy infrastructure and reducing its vulnerability to external pressures, added industry sources.
Copyright Business Recorder, 2024
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