Govt in final stage of drafting new LPG policy

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ISLAMABAD- The government is in the final phase of preparing a new and vibrant policy aimed at streamlining the matters related to the liquefied petroleum gas (LPG) production, import, distribution and marketing. “The new LPG policy is in the finalisation process and it will help ensure availability of the commodity throughout a year across the country at controlled rates,” a senior official privy to petroleum sector developments told APP.

He expressed confidence that the new policy would be beneficial for all stakeholders including consumers and marketing companies working in the LPG sector.

According to an official document, around 769,589 tons of LPG is used by domestic, commercial and industrial consumers 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 percent of the LPG consumed is met through local production, whereas the rest is 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, Oil and Gas Regulatory Authority (OGRA) has issued around 63 licences of different nature for promotion of liquefied petroleum gas (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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