LAHORE : Supplies of Locally Produced LPG which caters to 70% of the country’s requirements have witnessed a sharp decline over the last 10 days on account of low production of crude oil as well as reduced refining output. The chairman of the LPG Association of Pakistan, Mr. Farooq Iftikhar has urged the Ministry of Energy (Petroleum Division) to ensure that LPG Producers, both Refineries and E&P Companies of Public and Private sector produce LPG as per their installed capacities. “Pakistan’s local LPG production which is estimated at 2000 MT per day has declined to 1400 tons. The decrease is on account of shutdown of BYCO Refinery, and severely curtailed output from OGDCL and MOL operated fields of Makori and Nashpa” said Mr Iftikhar. The reduction in supplies which is mainly on account of build-up of Furnace Oil stocks, is impacting the availability of LPG in winter months. Recently permission has been given for uplifting these stocks and this will ease the situation. Imports have also been delayed on account of a plunge in international prices as private sector importers were reluctant to confirm orders until the new price was announced on 1st December. However, three shipments are expected to arrive in the next week which will further increase availability of supplies. “LPG Marketing Companies are making all out efforts to ensure that adequate stocks are available with their distributors and are keeping a vigilant check on prices to ensure that they remain within the limits assigned by OGRA” said Iftikhar.

He lauded the Government’s recent efforts on highlighting the issue of substandard LPG being imported via both land and sea.

“An acute awareness of this issue has resulted in a major improvement of LPG quality, particularly that coming from land via Taftan border.”