LPG is an alternate fuel basically used in Pakistan for domestic and commercial cooking fuel. It is also used in Auto, as Industrial fuel, in Power Generation and for any other energy generating equipment.
LPG is produced and supplied in Pakistan by the Refineries which produce LPG as its bye product and by the Oil and Gas Exploration Companies, which produce LPG at its well heads. It is also extracted from the Natural Gas at the time purification of Natural Gas.
1. Pak Arab Refinery Company Ltd (PARCO)
2. Pakistan Refinery Ltd (PRL)
3. National Refinery Ltd (NRL)
4. BYCO Refinery Ltd (BYCO)
5. Pakistan Petroleum Ltd (PPL)
6. Oil & Gas Development Corporation Limited
(OGDCL)
7. MOL
Apart from domestic LPG, Pakistan also needs to import LPG to meet its total consumption. Major Importers in Pakistan are
1. Pyramid Gas
2. Hazara Gas
3. Ayan Gas
4. Sui Southern Gas Company Ltd
Major foreign suppliers of Petroleum products/LPG are Countries in the Persian Gulf including: (1)Saudi Arabia (2) Iraq (3)
Kuwait (4) Qatar (5) UAE (7) Oman, and (8) Iran. A number of traders are also based in Bahrain, UAE & Oman.
Total annualised demand of LPG in Pakistan is estimated at around 1.4m Tons, of which around 876,000 MT is produced locally, and the balance needs to be imported from neighbouring Persian Gulf countries. While the local demand of LPG is increasing constantly, its local production is stagnant. So, with every increase in local demand the import would tend to increase.
Demand in winter rises by around 25% due to its use as heating gas in Punjab, NWFP and Gilgit Baltistan. Therefore, its import
is increased in Winter and is on a lower side during summer months of March to September.
LPG is a regularised product, and its price is controlled by Oil and Gas Development Authority as per the LPG Policy. It fixes producer price per MT to which is added government levies mainly, (CED and Petroleum Development Levy and GST) and Distribution Margin. However, normally the retail price is much lower than the price announced by OGRA due to competition. LPG Distribution and Sale. The Price is reset on 1st of every month taking into consideration the LPG benchmark price in the region i.e. Saudi Aramco Contract Price for Propane & Butane, the two main components of LPG.
LPG is sold by the Producer and Importers to the LPG Marketing Companies who in turn sells to the Distributors, to their Point of Sale and to the end users. It is prohibited for a manufacturer to sell to another manufacturer and likewise a marketing company can not sell to another marketing company. However, this restriction does not apply to imported LPG. The imported LPG can be sold by the importer to another importer or by one marketing company to another.
The LPG is transported through LPG Bulk tanks/ Bowsers mounted on Prime Movers. LPG is stored in Pressurised LPG Tanks in Pakistan and distributed to commercial and retail consumers in LPG Cylinders of various sizes from 5