Reaction against city govts takeover of LPG filling plants: 32% LPG supplies to Lahore stopped

  • 22/07/2008

  • Daily Times (Pakistan)

: The LPG Association of Pakistan (LPGAP) has suspended 32 percent of the Liquefied Petroleum Gas (LPG) supplies to Lahore to protest against the city government's takeover of LPG filling plants situated in the city. According to an LPGAP press release issued on Monday, two companies that are members of the association have stopped their supplies indefinitely. LPGAP Spokesman Fasih Ahmed said that the city government's takeover of the LPG bottling plants was "extra-constitutional and tantamount to nationalisation'. He said that association would decide a united response to the city government's step in the meeting scheduled for Wednesday (tomorrow). About 250 tonnes of LPG is sold every day in Lahore. The companies, Lub Gas and Mehran LPG, provide 80 metric tonnes (32 percent of the total supply) every day through three LPG bottling plants in the district. The two companies suspended their supplies on Monday. Other LPG marketing companies of Lahore are likely to follow suit, said the press release. Ahmed said that the companies were not legally bound to sell their product in the city and that the association had told the Oil and Gas Regulatory Authority (OGRA) and the Ministry of Petroleum and Natural Resources that LPG marketing companies should not be held responsible for any non-availability of the product in the city because a price hike would follow. He said the city government had "acted irresponsibly' and had set a "dangerous precedent for future government interference in private businesses'. Price will go up: LPG is currently available in Lahore at between Rs 63 and Rs 66 per kg. The reduction in supplies is likely to push the retail rate over Rs 85 per kg, according to the LPGAP.