STAFF REPORT LHR: Terming smuggling or under-invoiced imports from Iran a threat to the organised liquefied petroleum gas (LPG) sector and public health in Pakistan, the LPG Marketing Association has said the supply chain operates on fixed margins after procurement from producers.
“The price of LPG is determined by producers and not marketing companies. Technically, the government fixes the LPG rates as 63 per cent of the gas produced is sold by public sector companies,” the Associations chairman Farooq Iftikhar and other members told media.
Distributors get cylinders from marketing companies, transport them to their premises and sell them to retailers.
LPG marketing companies spokesman Belal Jabbar said there has been no issue with the LPG imported through sea. However, a huge quantity of Iranian LPG was being smuggled to Pakistan at almost half the producers price.
Furthermore, some substandard LPG was also being smuggled which emits carcinogenic fumes.
The explosive licence was earlier granted by Ogra but now the Ministry of Industries separately inspected and evaluated marketing companies for explosive licence. “There is no justification for paying two fees for same purpose,” he said.