Sector: LPG

Pakistani LPG network set to grow

Seeing growing interest in autogas as an environmentally friendly and significantly cheaper substitute to petrol, Pakistani authorities issued new licenses for more dispensing stations to be established. Some of them are already available to drivers.
An autogas refueling station in Pakistan© auto-gas.netThese are still few and far between in Pakistan, but the status quo is changing rapidly

The Oil and Gas Regulatory Authority (OGRA) has so far issued 155 licenses for the setup of LPG autogas refueling stations and seven retail points are already in operation in the country. Consumption of the affordable fuel is growing quickly and no wonder it is, since autogas is priced at half the cost of petrol (32 versus 66 rupees) and it's also cheaper than CNG (47 rupees).

As far as LPG imports are concerned, the figures are skyrocketing – from 62 thousand tonnes in 2014 to 145 thousand tonnes the following year and will likely exceed 400 thousand tonnes in 2016 (in the first half of the year 200 thousand tonnes were brought to Pakistan). Local production is also on the rise – from 1600 tonnes a day not long ago to 2500 tonnes a day today.

Furthermore, the All Pakistan LPG Distribution Association has urged the government to reduce taxes applied to autogas to make the fuel even more affordable. Besides, with more drivers using LPG instead of petrol and diesel, the less money will be spent on importing crude oil and the products of its refining. Still, autogas seems to be catching on even without fiscal help.


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Robert Markowski
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