LPG sector threatens nationwide shutdown over pricing, raids and security concerns

Pakistan’s LPG industry has threatened a nationwide shutdown next week if the government and the Oil and Gas Regulatory Authority (OGRA) fail to address its demands within three days.

The warning was issued at the All Pakistan LPG Industry Conference in Lahore, attended by more than 1,000 representatives of LPG importers, marketing companies, distributors, transporters and plant owners.

The conference, chaired by Haji Nouman Ahmed, approved a Charter of Demands and formed an Industry Coordination Committee to submit recommendations to the relevant ministries.

Industry representatives blamed OGRA and other regulators for the current price and supply problems. They also rejected raids, fines and the sealing of plants by OGRA, the Punjab Enforcement and Regulatory Authority and Civil Defence.

Haji Nouman Ahmed said OGRA’s price notifications covered only locally produced LPG and did not account for imported supplies, actual consumption volumes or transportation costs.

He also called for action against manufacturers and distributors of substandard cylinders.

Transport sector’s representatives said LPG was being imported from locations up to 3,300 kilometres away in Iran, while OGRA had notified a freight rate of Rs8,000 based on local transportation.

They also complained of harassment of drivers and vehicles and said LPG bowsers had been attacked amid worsening security conditions, particularly in Balochistan, causing losses of up to Rs1.5 billion.

The speakers said more than 450 companies were importing LPG and alleged that raids by the Para Force were disrupting plant operations.

Mian Ajmal, leader of the All Pakistan LPG Distributors, said OGRA was still using freight rates from 2016 and dealer margins set 10 years ago. He said the matter had been raised with the Federal Minister.

Industry representatives said security disruptions in Balochistan had pushed the market price of LPG above Rs500 per kg, compared with an expected price of Rs250 per kg.

They urged the government to improve security and revise pricing and freight mechanisms.

Haji Nouman Ahmed said all LPG plants, shops and transport operations would be shut if the industry’s demands were not accepted within three days. He added that traders would also stage protests.