LPGAP demands action against mafia


LPG Association of Pakistan (LPGAP) has expressed grave concern on unchecked import of LPG into Pakistan through Land & Sea routes and urged the Government to take action against importers mafia out to cripple Pakistan’s economy as well as local LPG Industry.
While addressing an urgent meeting, Chairman LPGAP Farooq Iftikhar said that government would have to take prompt action against both excessive import of LPG and smuggling of other petrochemicals products like Petrol, Diesel, Truck Tyres etc. through land route of Taftan & Mand, as it is not only hurting the local industry very hard, but is also causing substantial loss to the national exchequer.
Farooq Iftikhar said that locally produced LPG costs LPG Marketing Companies around Rs.100,000 per ton as local producers of LPG and marketing companies are paying 17% General Sales Tax besides Petroleum Development Levy of Rs. 4669/MT and also incur substantial operational expenses and additional Sales Tax , while low quality off spec imported LPG is being delivered by importers mafia to LPG plants all over @ Rs. 83000/- per MT as they are paying Nil Regulatory duty, and 10% sales tax only.
*Mr. Iftikhar, said that importers manipulate weight at customs as well, besides importing low quality and adulterated LPG which is not only affecting sale of local good quality LPG, but is also creating severe environmental and health issues amongst the low income citizens of the country.
He stated that Ministry of Petroleum & Ministry of Finance despite all our efforts are not taking serious notice of this issue which is causing continuous financial loss to the national exchequer. Iftikhar said that curbing import of low quality, spurious and adulterated LPG injurious to human health will also help in lessening LPG related accidents from happening as most of these accidents take place when LPG is transported in all types of substandard bowsers carrying more LPG than approved under the policy.