Gauhar backs linking LPG auction with Price ceiling
Aftab Ahmed
Islamabad: The SAPM Petroleum Tabish Gauhar has suggested linking the auction of LPG with a ceiling of LPG price in Pakistan.
The government considers a proposal to auction LPG to attract better prices in a new Policy.
He supported the proposal regarding the auction and called for linking it with the ceiling price of LPG based on the benchmark of Saudi Aramco’s price.
Gauhar said that there were several drastic variations of the LPG market and therefore urged to link the auction with a ceiling price of LPG.
Petroleum Division clarified that the Ministry had submitted a summary on the subject as per rules of business rather than a presentation on the LPG Committee Report.
Petroleum Division briefed the forum about the case and requested the approval of the proposal. It explained salient features of the LPG policy.
Minister for Science and Technology stressed deregulating the LPG market in order to promote a competitive market mechanism for a better price of LPG in Pakistan. However, he called for strengthening the role of the regulator to safeguard the interests of the consumers.
Minister for Maritime Affairs Ali Zaidi asked for ensuring the safety of LPG Cylinders which is missing in the LPG policy.
Chairman OGRA Masroor Khan stated that it is easy for them to regulate the LPG plants of 100 tons capacity but difficult to oversee the small plants. There is a need to develop the capacity of OGRA in this regard. The chair asked Chairman Ogra Masroor Khan to present the proposal in this regard.
Petroleum Division informed it had circulated the summary to all concerned stakeholders for their final comments. They will consider the comments and incorporate them before the final submission of the Policy that promises sustainability in LPG price.
More Read: CCoE shoots down new LPG Policy draft
The Cabinet Committee on Energy (CCoE) considered the summary dated 23ad June 2021 submitted by the Petroleum Division regarding “Recommendation of the CCoE’s-Committee Sustainable LPG Supply Chain Policy” and agreed to the broad principles as envisaged in the draft policy with directions as under;
The stakeholders should offer their comments on LPG Policy within fifteen days. Petroleum Division should consider the response of the stakeholders if received within the time frame, and submit the final draft LPG policy for the consideration of CCoE within three weeks.
Petroleum Division, while presenting the final draft policy, should also put up a response to these queries:
Assessment of expected outcome of the policy on the availability and usage of LPG i.e. possibility of any increase or decrease in the use of LPG. The assessment should be presented with proper analysis with backup data/information.
Expected changes in the prices of LPG due to the policy, i.e possibility of increase or decrease in prices, if any.
Assessment of impact on the profitability of the producers of LPG.
