The government has once again decided to rely on liquefied petroleum gas (LPG) imports in response to the current gas supply challenges. A subsidiary of Sui Southern Gas Company (SSGC) has been granted permission to import gas without going through a bidding process.
As per reports, Pakistan SSGC-LPG (Pvt) Limited (SLL), a subsidiary of SSGC, has been allowed to procure 20,000 tonnes of LPG per month from November 2023 to March 2024 through spot cargoes. The exemption covers four rules of the Public Procurement Regulatory Authority (PPRA) that regulate the bidding process and contract award.
SLL’s request for exemption was submitted to the PPRA through the Petroleum Division on October 3, 2023. Earlier this year, on June 9, 2023, the government, following the PPRA board’s recommendation, granted SLL exemption from specific rules for the purchase of spot LPG cargoes from April 2023 to September 2023.
The PPRA board also suggested that the Ministry of Energy should follow the principle of ‘lowest price’ for the whole quantity and split the required quantity from various suppliers at the same lowest price if needed.
This is not the first time that the government has waived PPRA rules for LPG imports. Last year, the previous government had also given a similar exemption to SLL, which faced criticism from the LPG industry and dealers’ association. They accused the company of inflating the prices and violating the notified rates of the regulator.
LPG is considered an alternative fuel for domestic and commercial consumers, especially in areas where natural gas is not available. After reviewing a summary submitted by the Cabinet Division, the federal cabinet approved the proposal.
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