Government urged to check LPG cartelisation, price manipulation

The Chief Executive Officer (CEO) of SHV Energy Pakistan (Private) Ltd, Sohail A Qurashi, on Monday urged regulator to, instead of price control, in LPG sector in a bid to ensure fair competition in the market. "The government should take measures to control LPG prices through fair competition in market," he said while addressing Pakistan Energy Conference, organised by Petroleum Institute of Pakistan.
He said that all players should be allowed to have free availability of LPG at similar prices, and a clear policy on comparative fuel taxation and pricing should be adopted. "Legislation should be done against cross filling of cylinders and measures should be taken to control smuggling of LPG," he demanded.
Qureshi said that to grow the LPG market, support from the government and the Regulator is required for increased LPG supplies through imports, and safety implementation throughout the LPG distribution chain. "Clear policy on tax/price on different fuels may be allowed to attract investment," he said, and urged the government to control smuggling of substandard LPG.
He said that an LPG consumer requires a safe, economic and correctly filled cylinder and, to this effect, cylinder cross-filling needs to be stopped by linking company sales to stock of cylinders available. He urged the regulator to take steps to ensure (i) correct LPG weight filling; (ii) ban on manufacture and sale of small non-company-owned cylinders; (iii) re-qualification of cylinders; and (iv) controlling of substandard LPG smuggled from Iran/Turkmenistan and control of 'decanting'.
In order to ensure safety, he said, compliance to codes and standards throughout the distribution chain should be implemented and pressure-vessels be manufactured with prescribed steel only. There should be use of genuine UL Listed valves only for LPG plants/vessels and LPG tankers to comply with international standards like ADR, COP2 and BS 7122, etc. Inspection of LPG vessels (both static/mobile) should be carried out by certified inspectors, having international accreditation only. "Only credible manufacturers, with requisite facilities and relevant accreditations, should be allowed to manufacture LPG vessels," he added.