Khokhar For Legalizing LPG Use In Auto Sector

ISLAMABAD, (UrduPoint / Pakistan Point News - 12th Apr, 2021 ) :Liquefied Petroleum Gas Industry Association (LPGIA) Chairman Irfan Khokhar has requested the government to legalize the use of LPG in the automobile sector of the country due to its environment-friendly nature and cost-effectiveness as compared to petrol and diesel.

"Currently, the LPG is around 50-60 percent inexpensive as compared to petrol and diesel. Legalizing its use in the automobiles will greatly help in promotion of this sector , " he told APP.

He was of the view that the permission should be granted for LPG use in the vehicles under a foolproof safety mechanism, stressing the need for launching a more effective crackdown against the elements involved in production of substandard LPG cylinders and equipment.

He predicted that the commodity price would come down to Rs 110 per kilogram in the coming days because of the Pakistan Tehreek-i-Insaf (PTI) government's prudent economic policies under the ease-of-doing-business plan.

For the month of April, Oil and Gas Regulatory Authority (OGRA) has decreased the locally produced LPG price by Rs 166.33 per cylinder of 11.8 kilograms, following which the cylinder is available in the open market at Rs 1,718.59.

With promotion of the LPG sector, the chairman said the government would be able to tackle the environmental and climate change issues, besides saving billions of rupees annually on account of oil import bill.

He said the government was in process of finalizing the new LPG policy in consultation with all stakeholders aimed at streamlining the matters related to the commodity's production, import, distribution and marketing.

According to an official document, around 769,589 tons of LPG was being consumed by domestic, commercial and industrial sectors on the annual basis.

During the last fiscal year, the domestic sector consumed 322,779 tons of LPG, commercial and industrial consumers utilized 348,518 and 98,292 tons respectively.

The all three-category consumers used 16,021 tons LPG in Islamabad, 459,026 tons in Punjab, 81,286 in Sindh, 72,997 tons in Khyber Pakhtunkhwa, 22,564 tons in Balochistan, 43,468 tons in Northern Areas, 26,087 in erstwhile Federal Administered Tribal Areas and 48,142 tons in Azad Jammu and Kashmir.

The government has set the target of producing 753,051 tons LPG through indigenous means and importing 317,263 tons during the current fiscal year. Around 76 per cent of the LPG consumed was met through local production whereas the rest was imported.

The LPG sector has attracted approximately Rs3.72 billion investment in supply and distribution infrastructure during first nine months (July-March) of the last fiscal year, which showed investors' confidence in business friendly policies introduced by the government.

During the period, OGRA issued around 63 licences of different nature for promotion of LPG industry in the country, including one operational licence of LPG storage terminal, three for setting up LPG air-mix plants, 35 for construction of LPG storage & filling plants and 18 for operation of LPG storage & filling plants.

Besides, it granted three licences for construction of LPG auto refueling stations and three operational permits for LPG auto refueling stations.

Currently, as many as 11 LPG producers and 200 LPG marketing companies are operating in the country, with more than 7,000 authorized LPG distributors.

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