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Print Print edition: 2011-12-13

Pak-Iran border: LPG smuggling worries Ogra

Published Updated

The Oil and Gas Regulatory Authority (Ogra) has expressed serious concern over smuggling of LPG cylinders from Iran and requested the Federal Board of Revenue (FBR) to immediately place special check at the Pak-Iran border to check illegal import of low quality LPG cylinders into Pakistan.
Sources told Business Recorder here on Monday that the Ogra has informed FBR Chairman Salman Siddiq about the ongoing smuggling of LPG cylinders through Pak-Iran border. The failure of the FBR Anti-Smuggling Wing is evident from the Ogra's letter, which clearly talks about absence of any mechanism to check smuggling of low quality LPG cylinders which is a serious threat to the lives of the general public. The Ogra and the concerned association raised the issue from time to time in the past, but the complaints of smuggling of the LPG cylinders from Iran have not reduced. Apparently, FBR Anti-Smuggling Wing has totally failed to take any measure to check smuggling of the LPG cylinders through Pak-Iran border.
The Ogra has informed the FBR that the self explanatory letters received from M/s Shell Gas LPG (Pakistan) Limited and LPG Association of Pakistan (LPGAP) regarding the illegal import of cylinders filled with Liquefied Petroleum Gas (LPG) from Iran which is a matter of serious concern both from local LPG industry as well as public safety angle. It may also be pointed out that while LPG can be imported legally, its handling requires license under the LPG (Production and Distribution) Rules, 2001. The Ogra has also communicated the list of companies having licence for handling and marketing of LPG for information and record of the FBR.
Sources said the Ogra has further requested the FBR to advise the concerned Customs Authorities at the Pak-Iran border to curb the illegal import of LPG in cylinders/through bowzers. Sources said that the LPG Association of Pakistan (LPGAP) was of the view that the smuggled LPG is a matter of grave concern for the local LPG industry as well as from the public safety perspective. The FBR is, therefore again requested to kindly advise the concerned Customs Authorities at the Pak-Iran Border to curb the illegal import of LPG in cylinders/through bowzers. An updated list of those companies having a valid licence for handling and marketing of LPG has also been provided to the FBR for allowing imports of only authorised LPG marketing companies.
In the past the Ogra has repeatedly informed the FBR about the illegal trade, but the FBR Anti-Smuggling Wing has not taken any action on these complaints due to unknown reasons. An earlier letter of the Ogra said that it has been reported from time to time that smuggling of LPG in cylinders and bowzers from Iran was still going on at Pak-Iran border.
This illegal import of LPG in cylinders and bowzers from Iran is not only a matter of grave concern for the local LPG industry but also a safety threat for the general public since, both LPG and the cylinders are off specs and substandard which could cause untoward incident. It may also be pointed out that while LPG can be imported, its handling requires under the LPG (Production & Distribution) Rules, 2001.
It was therefore; requested again that FBR may kindly look into the matter and advise the concerned Customs authorities at the Pak-Iran border to curb the illegal import of LPG in cylinders/through bowzers to safeguard LPG industry as well as the LPG consumers/general public in the country, sources added.

Copyright Business Recorder, 2011

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