The Public Accounts Committee (PAC) has strongly criticised 'Liquefied Petroleum Gas (LPG) Policy 2006', saying that it was encouraging monopolistic trend in the LPG sector, and called for revisiting the policy, making it more competitive to facilitate the consumers by lessening the control of LPG companies.
The PAC took strong exception to the policy that empowers LPG producing companies to allot quotas to influential people, having politicians' and dictators' backing. However, the Petroleum Ministry has ruled out its interference in allotting quota on the basis of nepotism and favouritism. Some members of PAC termed the LPG Policy anti-people and demanded its revision to discourage cartels and benefit consumers.
PAC in its meeting held under the chairmanship of Nisar Ali Khan also directed both gas utilities, Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipeline (SNGPL), to submit their plan for closing CNG stations in winter in a meeting likely to be held at the end of current month.
Member Saeed Zafar said that LPG Policy 2006 should be revisited as it helped 'big fish' in getting allotment of LPG quota and encouraged the LPG monopoly to fleece the consumers. "It is too much," he said, adding that the Petroleum Ministry should be directed to work on revisiting the LPG Policy 2006. He said that current policy had facilitated the ruling elite in LPG quota allotment.
The Chairman said that manipulation in quota allotment started in the era of former military dictator General Zia-Ul-Haq and it reached its peak level during the tenure of former military dictator President General Pervez Musharraf. Member Muhammad Asif said that due to the failed policy, some characters had become tycoons who used to get little allocation of 10-15 tons LPG using political influence.
He added that the policy should be formed in such a way that everybody who wanted allocations of LPG should get it. "The policy should also safeguard the interests of consumers," he said. Secretary Petroleum Mahmood Saleem Mahmood said that under LPG Policy 2000, Petroleum and Natural Resources Ministry had not given quota to anyone.
Under the policy, LPG production companies allot quota through open bidding. He agreed that a way should be found to provide LPG at cheaper rates without discrimination. He said that Parco, PPL and other private LPG producers allot the quota through open transparent bidding.