Pakistan government has decided to formulate a long-term LPG policy to encourage the fuel adoption in the country and restrict the extension in pipeline network. Special Assistant to Prime Minister on Petroleum Division Nadeem Babar chaired a high-level meeting where he said: “We are going to make a policy by promoting the use of the LPG in all sectors in new long-term LPG Policy.”

The new policy will include the promotion of LPG as vehicle fuel. Irfan Khokhar, Chairman of the LPG Industry Association of Pakistan, briefed the meeting that Autogas is 65% more economic than petroleum products and 20% than CNG. He said that its use in vehicle sector will lead to reducing import bill.

Gas utilities – Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) – have been facing billions of rupees worth of losses due to extension in the pipeline network. The use of LPG will help control these losses.

During the meeting, Babar said the government would prepare a long-term policy to promote the use of LPG in the domestic sector. He said the existing tax regime for LPG would continue and no new tax would be imposed on the sector to encourage imports in order to meet domestic demand.

Local LPG producers, marketing companies, importers and distributors also attended the meeting. For more information, please check this link.

3 July 2019