ISLAMABAD (Kashmir English): The Pakistani LPG industry has warned the authorities of a nationwide strike next week if its issues of pricing, security and policy concerns are not addressed in the next three days.
The threat came at the All Pakistan LPG Industry Conference in Lahore, wherein more than 1,000 delegates comprising importers, marketing agencies, distributors, transporters and owners of plants have said that their industry is facing a crisis in prices and supplies due to actions of the Oil and Gas Regulatory Authority (OGRA) and other regulators.
The All Pakistan LPG Industry Conference, which was headed by Haji Nouman Ahmed, the head of the LPG industry, has expressed concern that the price notifications of OGRA have taken into account only locally produced LPG and ignored the higher prices of imported LPG, the cost of transport and the prevailing market situation.
The conference has further demanded that the makers and distributors of inferior-quality LPG cylinders be penalized.
The industry leaders were also concerned about the out-of-date freight rates and dealer margins. LPG carriers noted that OGRA is still using the local freight rates while LPG has been imported from areas as distant as 3,300 km away in Iran.
LPG carriers have also cited their harassment and alleged that deterioration of the security situation in Balochistan has put them through a lot of attacks, causing financial losses amounting to Rs. 1.5 billion.
Speakers noted that more than 450 companies are currently importing LPG to Pakistan, yet there are many unnecessary restrictions on them. Enforcing agencies have conducted raids and closed down LPG plants without having any idea of how things work in the industry.
The conference was alarmed by the effects of the security situation in Balochistan on LPG prices, saying that because of the turmoil, LPG prices are now higher than Rs. 500 per kg while under normal conditions, LPG would be sold at Rs. 250 per kg.
At the end of the conference, the participants agreed on a Charter of Demands and an Industry Coordination Committee was formed to submit their demands to the government.
