Imported chemicals: LCCI says concerned at regulatory changes in flash point standards

LAHORE: The Lahore Chamber of Commerce and Industry (LCCI) has raised serious concerns regarding recent regulatory changes in Pakistan’s flash point standards for imported chemicals regarding import, transportation and storage which is hitting 40 chemicals including Prop BH, Isobutanol – IBA, Styrene Monomer, Gum Turpentine, N Butanol – Normal Butyl Alcohol, Butyl Acrylate, Acetic Acid and others.

“The Minister for Petroleum should convene an urgent meeting of the stakeholders to have their feedback on this serious issue which is hitting pharmaceutical, printing, adhesive and various other industries.”

In a letter to the Minister for Energy (Petroleum Division) Musadik Masood Malik, LCCI President Mian Abuzar Shad said that the new standards were imposed without prior consultation with the business community, potentially endangering thousands of industries that rely on these chemicals as essential raw materials.

The LCCI President said that the decision has been implemented immediately while DPL License application process, can take up to two years to complete. The industry could not survive for such a long time without necessary chemicals.

He said that this delay, along with additional demurrage and detention fees that accrue after 24 hours of port holding time has led to significant financial strain for the business community.

The LCCI President said that the flash point limits specified in the regulation are not only impractical but are also misaligned with international benchmarks. Such a misalignment could disrupt various essential sectors, particularly pharmaceuticals, printing, plastics and paint manufacturing which all rely heavily on the affected chemicals. These sectors produce life-saving drugs, food products and daily-use items, meaning the impact of shortages would resonate throughout the economy and affect millions of citizens.

The LCCI President also expressed deep concern over a severe shortage of essential chemicals due to newly imposed flash point standards, enabling some stockholders to charge exorbitant prices, which are further escalating. This price surge is impacting the industries.

“The chemicals have been distributed in three categories. Petroleum Clause A means petroleum having flashpoint below twenty four degree centigrade, petroleum Clause B means petroleum having flashpoint of twenty four centigrade and above but below fifty five degree centigrade and Petroleum clause C means petroleum having flashpoint of fifty five degree centigrade and above but below ninety three degree centigrade.

Mian Abuzar Shad threw light on several other issues linked to the new policy. He said that many importers have responded by substantially increasing prices due to elevated risks, which in turn has placed an undue financial burden on local industries.

The LCCI has called for an immediate review of the move to avert widespread industrial disruption, which they argue could lead to shutdowns and a potential crisis in the availability of vital goods.

President of the LCCI hoped that the Federal Minister for Energy would take immediate notice of the notice and direct the concerned authorities for an immediate review.

Copyright Business Recorder, 2024