ISLAMABAD - LPG Chamber of Pakistan has warned that there could be LPG shortage during holy month of Ramazan following blocking of LPG imports by LPG terminal company, a subsidiary of Sui Southern Gas Company Limited (SSGCL).

While addressing a press conference, Irfan Khokhar, regional chairman LPG standing committee of FPCCI, said that state-owned LPG terminal company had refused to entertain two ships of LPG imports carrying 11900 metric tons within a week, resulting in accumulative loss of Rs 40 million to national exchequer. He said that LPG terminal charged $32 per metric ton and so this company caused a multi-million rupees loss to national exchequer. The government of Pakistan is major shareholder in SSGCL and this act by state owned terminal company has not only led to multi-million rupees loss to the importers but also to national exchequer.

In routine, the LPG demand is over 3000 to 3500 metric tons per month that would jump up to 7000 metric tons in month of Ramazan. The bureaucratic tactics of state owned terminal company would cause shortage of product due to blocking of LPG imports that would lead to increased prices. He said that government had made efforts to enhance supply of LPG through imports but state owned terminal company was involved in conspiracy against government to create artificial shortage of gas due to blocking of LPG imports.

He said that one LPG importer had already switched its business to private terminal due to problems created by LPG terminal company, a subsidiary of SSGCL, and one more LPG importer had been blacklisted due to filing case against the company to recover the LPG stock kept with LPG terminal on account of security deposit.

Khokhar said that terminal company bought by SSGCL was a dead one and importers had played a key role in riving this company due to imports. He said that last year 1.2 million metric tons LPG was sold in Pakistani market and out of it, 0.53 million metric tons LPG was imported.

He said that he had exposed LPG theft of 2000 metric tons worth Rs 147 million at terminal of SSGC subsidiary company. He said that he had held meeting with high ups of the company and SSGC Managing Director had chaired the meeting. SSGC chief had assured to take action but no remedy had been done so far.

LPG requirement of the country stands at around 100,000-130,000 MT per month, out of which approximately 50-60% LPG is being imported, while the remaining is produced by the local producers.