"We whole-heartedly support Federal Minister Naveed Qamar's bold and correct position to regularise LPG supplies from public sector producers and urge the government to follow a similar process for all ad hoc public sector LPG production," he further said.
The LPG supplies from OGDCL's Kunnar and Bobi fields were being provided to LPG marketing companies on an ad hoc basis since 2000 and 2004 respectively and in the absence of any signed contracts existing between the public sector producer and the private sector marketing companies. Efforts to streamline LPG supplies from OGDCL had been repeatedly sabotaged through frivolous litigation.
"Participation in the public auction process in December was highly competitive and vigorous," said LPGAP spokesman, adding that the process has yielded over Rs 500 million for OGDCL as bonus. "The process has been financially rewarding for OGDCL and also allowed the LPG sector to procure supplies through a highly transparent mechanism.
The LPGAP urged the government to institutionalise this process for all LPG produced in the public sector in order to promote greater efficiencies in the sector. The LPGAP also called on the government to urgently overcome obstacles in the way of increasing local LPG production by 900 metric tonnes per day or by 75 percent. "Additional local LPG production is being held hostage by vested interests who have mired the process in self-serving litigation," said LPGAP, adding that this matter must be taken up by the Parliament and the judiciary.