Lahore - The Pak-Arab Refinery Company (PARCO) is producing around 500 MT of LPG per day which was allocated to 16 marketing companies only. As the allocation agreements have been expired, the Refinery management, instead of calling open tenders, is trying to strike a deal quietly in the next couple of days. There are 94 marketing companies working across the country but PARCO is re-allocating LPG to only its favourite 16 marketing companies through negotiations.
All marketing companies should be provided a level playing field through open tender system as due to the present policy of PARCO’s management, majority of the marketing companies are left with no choice but to sell imported LPG.
The LPG Marketing companies said that Ministry of Petroleum should look into the matters of PARCO and make its management to call open tenders for LPG as was done in the case of LPG allocations of GHBL, OGDC and other producers. They also urged the government to down the present high selling price of locally produce LPG and assist the government efforts in economic uplift of the country by providing cheap fuel to the masses.
They said that the locally produced LPG, presently being sold by the Producers at higher than the CP price, is injuring the economy as imported low quality gas is making its way into the country in a big way thus harming the local producers and the national exchequer. FBR must ensure that no extra LPG is imported in excess of local demand as valuable foreign exchange is wasted besides damage to local production.
“We strongly voice our concern at the Government’s complete silence despite our repeated protests.”
LPG Association of Pakistan urged upon the Federal Petroleum Minister Shahid Khaqan Abbasi to look into the mater and ensure complete transparency in the re-allocation of LPG quota’s by Pak-Arab Refinery Company (PARCO), saying that all allocations should be made through open tender systems. Chairman LPG Association of Pakistan Farooq Iftikhar said that all marketing companies approved by OGRA should be given an equal opportunities to participate in the PARCO bids for LPG.