Regulatory regime on LPG in the offing

ISLAMABAD - As part of remedy to manipulations in Liquefied in Petroleum Gas(LPG) market, the government has decided to work out a regulatory regime for ensuring transparent supply chain of the fossil gas. The government is proposing to bring all LPG distributors outlets into a regulatory framework to be provided to the OGRA wherein it will be compulsory for anyone storing, distributing and selling the LPG to have licence from the OGRA to prescribe minimum safety standards, Syed Naveed Qamar, Minister for Privatization, Water and Power said as a chief guest at the 5th annual public conference of the LPG association, on Thursday. He said unfortunately the local production of LPG in the last two years had declined from about 2000 tons per day to around 1200 tons per day due to depleting fields and the non-augmentation of additional production. But now, he added I am optimistic that 2012 will see a serious rise in local production for the benefit of the general public and the industry must gear up to develop its infrastructure to handle the large influx of LPG, he added. He said the government expects that large volumes of LPG would be allocated through a transparent bidding mechanism. He said it was true that due to rise in the international market for oil products, the international price of LPG was going up and since most of the production in Pakistan was through processing of crude oil, the prices were affected.

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