The government has braved itself to meet the dual challenge of the increasing cost of fuel and the looming energy crisis through promotion of liquid propane gas (LPG), which is not only cheaper than petrol, but is also a viable substitute for compressed natural gas (CNG), said Federal Petroleum & Natural Resources Minister Dr Asim Hussain.
Addressing the inaugural ceremony of the country’s first autologous LPG station, the minister said that the strategy would also reduce the exceptionally high reliance of the domestic, industrial, transport and power generation sectors on the fast diminishing natural gas resources of the country.
He said that a study conducted by the Sui Southern Gas Company has established that LPG would cost consumers Rs 73 per litre against Rs 103 for petrol and Rs 70 per kg for CNG.
“Average per km cost for these three fuel options would be Rs 9.40 for petrol, Rs 6 for LPG and Rs 5 for CNG,” he added.
In terms of velocity, he said that it would be 42 litres for petrol, 50 litres for LPG and 9kg for CNG with a petrol-run car covering a distance of 464km, LPG 600km and CNG 135km.
“This is besides the fact that carbon content of LPG is far below as compared to petrol or motor spirit,” said the minister.
He said that the government’s energy policy has been developed after careful thinking and on the basis of which, the major focus has been on reshuffling the current energy mix of the country with 55 percent burden on gas currently.
He also said that the present government’s approach is absolutely different from those adopted by the previous governments that ignored the depletion of natural gas while formulating their energy policies.
“Usage of this precious commodity had risen to 8bcf, while its production was a mere 4.3bcf,” he said, regretting that the previous governments not only ignored the harsh facts, but the work on alternative sources of energy was also slow-paced.
Hussain said that the present government had assumed power in a period when economic meltdown had turned into a global phenomenon and this has equally affected all the countries and their governments.
Despite this, the Pakistani government has substantially subsidised price of gas for domestic users, he said, mentioning that the government procured gas at a rate of $6, but provided it at $2 to the lifeline consumers.
This, he said, could not be managed in context of oil and petrol (crude oil) due to international structuralisation.
The minister said that the Rs 14 charged under the head of general sales tax (GST) on every single litre of petrol could be slashed by the provincial governments that presently collect 70 percent of the GST share.
He said that the government is keen to promote LPG on strong lines and expects that CNG stations’ owners and other stakeholders would opt for a conversion option that would be supplemented by government efforts to reduce rebate and other taxes on import of essential gadgets like pumps for LPG application.
Earlier, Hascol Petroleum Chairman Mumtaz Ahmed Khan said that LPG is a cheap as well as a more acceptable automobile fuel that would require import of specially designed pumps and special kits.
He appealed to the government to provide relief on import duties as well as on other taxes for promotion of a public-friendly fuel that is not only cost-effective, but also environment-friendly. “Relief in duties will ultimately benefit the consumers,” he said.
Khan also suggested the need for early notification of the framework chalked out for promotion of LPG with due stock towards associated safety and security nets.
He said that all CNG stations and petrol pumps must be given the option to convert into LPG pumps that, he said, would be of great benefit for the people in general.
