CNG, LPG bodies at loggerheads: LPG use in vehicles
By Aamir Shafaat Khan
KARACHI, Nov 12: The LPG Association of Pakistan (LPGAP) and the CNG Station Owners Association of Pakistan (CNGSOAP) are now at loggerheads, as stakeholders in LPG trade think that it is safer than CNG, while CNG station owners offer an opposite remark.
The LPG association also claims that 50 per cent of the gas out of total daily consumption goes towards the auto sector, while CNG station owners claim that hardly one per cent of the automobiles run on LPG in Pakistan.
The two associations have started trading charges against each other after the report that “the government has legalized the use of LPG in automobiles”.
The LPGAP claims that the federal cabinet has approved the use of LPG in automobiles on September 21, while the CNGSOAP challenges the stance of the LPG association, saying that real facts are different.
It is surprising on the part of the government for legalizing the use of LPG in vehicles after maintaining a complete ban from the very beginning due to various reasons. Despite a complete ban on LPG use in vehicles, the gas became very popular in rickshaws, old taxis, etc., besides people having old model cars have also installed LPG kits because of a frequent increase in petroleum prices.
Instead of taking any action against the illegal use of LPG in commercial vehicles, the government is now coming up to legalize its use.
CNG Dealers Association Chairman Abdul Sami Khan expressed the surprise over the government move, saying the government is trying to make people happy only after a phenomenal increase in petrol prices, despite knowing the fact that LPG is dangerous for health.
“Everybody knows that LPG is not being used in vehicles all over the world. The government should avoid in legalizing the use of LPG in vehicles without taking any suggestions about safety rules and regulations from the market people,” he added.
CNGSOAP Chairman Malik Khuda Bux said the government had not issued any notification about the use of LPG in automobiles, but the LPG association was creating an excitement on its own. He said he had checked with Ogra and the petroleum ministry which denied issuing any policy or SRO in this regard. “It is just an approval and not a firm decision,” he added.
“LPG is not a safer fuel as it catches fire quickly, besides it is not environmental friendly which is evident from its pungent smell coming out of rickshaws and taxis. CNG disperses in the air while LPG remains in the ground after coming out the cylinder.”
“Hardly one per cent of vehicles run through LPG in the country,” he said, adding that 862,000 vehicles had so far been converted into CNG, while there were 789 CNG stations all over the country.
LPG is basically targeted to reach the people living in the northern areas for cooking and other domestic purposes in order to save the decreasing forest areas and discourage use of wood, but the fuel is being illegally used in vehicles, he said.
The gas is supplied at a subsidised rate of Rs17,500 per ton to LPG bottling companies, but it reaches to only a few per cent people at much costlier price, as a large supply goes to commercial transport users at ‘black market prices’.
LPG is sold as automotive fuel through ‘black market’ at Rs35-45 per kg, depriving genuine users in far flung areas of this essential commodity. Due to higher prices, LPG has gone beyond the reach of common men.
Mr Bux said earthquake victims were now in dire need of LPG and an estimated one million LPG cylinders per month alone were required in the quake-hit areas, besides a regular requirement in the country.
On the contrary, LPGAP Chairman Iqbal Z. Ahmed claimed that the federal cabinet had taken a decision to legalize the use of LPG in automobiles on September 21.
He also claims that an estimated 10 million vehicles run on LPG throughout the world, such as the US, the UK, Italy, Japan, China, Singapore and India. He added that LPG was a preferred automotive fuel for its economical and environmental advantages. “In Pakistan, 50 per cent of our daily consumption goes to the auto sector,” he said, adding that the country produces 1,600 tons of LPG a day.
He said the government had restricted the use of LPG in vehicles because of very low production a few years ago. Now it has decided to liberalize the use owing to a surplus production in the country. “It is also wrong to say that LPG is a dangerous fuel as it stays on the ground,” he said, claiming that LPG evaporates in just six seconds from the ground.
He said CNG station owners and dealers felt threatened with ending of their monopoly in cheaper fuel.
Mr Ahmed said that LPGAP companies would set up auto gas fuelling stations throughout the country on global prevalent safety standards.
“We will ensure that the cost of LPG and its conversion kits remains lower than the cost of CNG and its conversion kits,” he added.
Mr Ahmed pointed out that the current landed cost of imported LPG was Rs60,000 per ton and not Rs32,000-35,000 as claimed by the CNG station owners. “The imported product is selling below the cost price and the difference is being absorbed by the importing companies.”
In view of the LPG use in automobiles, the LPGAP is of the view that auto gas fuelling stations may not be set up on roads where the total width (including shoulder) is less than 40 feet. “Stations should meet all inter-equipment distances which, as previously submitted, require a plot of 7,000 square feet. Storage tanks should be restricted to no more than 10 tons.”
He said Ogra might issue licences to operational LPG marketing companies for setting up auto gas stations against a fee of Rs100,000. “The licence should be subject to obtaining NOCs from the department of explosives and the local DCO,” he added.
The filling of domestic- or commercial-use LPG cylinders should not be allowed at these stations, but their storage and sale might be permitted as per practice in other countries, he added.
“Ogra may allow companies to set up auto gas dispensing facilities at the existing petrol and diesel stations, as in the case of CNG.”
Mr Ahmed said the government had deregulated the LPG sector in 2001 and LPG production and marketing companies were not bound by artificial rates and were free to sell products at prices determined by market forces.
