LAHORE - Despite availability of large vessels at Port Qasim, supply of imported LPG to market and to end consumer is being manipulated by few large companies, causing a hike in prices of liquefied petroleum gas at the whims of these dominant importers.
LPG Association of Pakistan (PGALP), in an urgent meeting, voiced its deep concern at efforts of certain importers of LPG to crowd out free competition by establishing their hegemony at import terminals. PGALP Chairman Farooq Iftikhar said that there are only two LPG Terminals in Pakistan, both located at Port Qasim with limited receiving and storage capacity.
He said that certain influential importers have been resorting to unfair tactics, to block limited storage thereby creating unnecessary hindrances for other importers to bring LPG to Pakistan. Such importers then abuse their dominant position by holding the product and not releasing it for several days to create artificial shortage of LPG and mint exorbitant profits, he added.
He said that in the past, terminal operators offered discharge of LPG vessels on first come, first serve basis. However, recently there are reports that private LPG terminal were coerced into long term preferential contract with specific importers without realising the impact this would have long-term, and are now being forced by these importers to refuse accommodation of other importers.
He said that both Engro Vopak Terminal Limited (EVTL) and Sui Southern Gas Company (SSGC) previously followed a rule, whereby LPG was swapped between importers to accommodate maximum discharge of LPG from vessels. Lately, these influential importers have been disallowing terminals to swap its product thereby deliberately choking and occupying terminal space and not allowing competitors to discharge their vessels.
“We draw urgent attention of Minister for Petroleum & Natural Resources and OGRA to immediately intervene and ensure that all importers are offered equal opportunity to use Terminals for discharge of their vessels, and no one importer be allowed to manipulate preferential use of these terminals,” he added.