LPG shows tremendous growth strategy

Islamabad: The Liquefied Petroleum Gas (LPG) has shown a tremendous growth in terms of rising number of producers, importers, marketing companies and distributors and so far attracted an investment of $200 million since 2000 in the country. More investments are expected in future, official sources in the Ministry of Petroleum and Natural Resources said.

LPG is a clean, efficient and environment friendly fuel with a wide range of applications in commercial, industries and households as a substitute for natural gas. The widespread use of LPG in auto sector will soften the rude impact of rising prices of petroleum products. The ministry is also looking forward to additional investments in setting up of dedicated LPG auto gas stations and LPG production plants.

However, it has been noted that LPG availability has been confined to urban centres, despite government's clear objectives and directives to supply mandatory quota to the Northern hilly areas, AJK, interior Sindh and Balochistan and Fata. It is pointed out that LPG marketing companies are not faithfully implementing these policy measures and the regulatory mechanism of Ogra is also not pursuing the defaulting LPG marketing companies.

The local production of LPG can be increased by another 900 metric ton per day if the development of the dormant fields is fast tracked by the concerned exploration and production companies. Mere policy measures cannot achieve the intended outcome, without being effectively monitored and implemented by regulator.

The OGra can step up their activities to check the malpractice of decanting, underfilling and cross filling of LPG cylinders to save the life, limb and property of the LPG users. The LPG marketing companies should fulfil their corporate social responsibilities and must concentrate on the economy of scale for earning their profit rather than concentrating on demand management measures.

According to an estimate, about 50 percent urban households are using LPG in neighbouring India. In Pakistan, it has become a fuel of choice but it contribute less than a one percent in total energy supplies which can be enhanced up to 3 4 percent.

The indigenous production of LPG is about 1,700 metric tonnes per day and there is potential to produce additional 900 metric tonnes per day. The number of distributors has reached to 7,000 across the country.