SSGC LPG successfully unfolds conspiracy by LPG black marketers

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SSGC LPG Limited (SLL) is Sui Southern Gas Company Limited’s wholly-owned subsidiary Company that operates an LPG Import Terminal at Port Qasim Authority (PQA), Karachi. SLL is a state-owned enterprise (SOE) that operates under the Ministry of Energy (Petroleum Division) (MoE-PD). A fully integrated LPG marketing and distribution company, SLL has, over the years, emerged as the largest importer of LPG in Pakistan. These imports are made in a highly transparent manner through international bidding in complete adherence to PPRA Rules, whereby tenders are awarded to the most advantageous bidders. All these imports are being made through opening Letters of Credit, which are retired through normal banking channels.

Under the directives of the MOE-PD, SLL increased its LPG imports to ensure there were no LPG shortages during peak demand seasons. At the same time, SLL is committed to ensuring that it does not allow black marketers who take advantage of these shortages to artificially increase the prices of LPG and earn extra profits from consumers.

More than 250 LPG marketing companies are operating in Pakistan. SLL has no local allocation of indigenously produced LPG and is dependent on imports. SLL’s market share is about 8%, which cannot be termed monopolistic, whereas similar companies operate with larger market shares. It is also to be noted that the price of indigenous LPG is always lower than imported LPG, whereby the importer has to keep its selling price within the OGRA announced price, which is equal for importers and those with quotas from local producers. Therefore, there is no room for extra profit taking for companies depending upon imports such as SLL.

SLL’s continued success, earned with the right blend of transparency and integrity, has been hard to digest for many circles. It has been noted with grave concern that some vested interests are out there to defame SSGC and SLL, accusing their employees of financial misconduct in LPG imports while also misquoting a few Government investigating agencies, MoE-PD and others. These vested interests are passing on frivolous information to develop contradictory news reports. The management of both companies has repeatedly denied those assertions of ‘financial misconduct’. There are routine enquiries/clarifications from Investigating Agencies based on certain complaints, which is normal for any Public Sector SOE.

It is pertinent to point out that most of the complainants are self-proclaimed stakeholders, and they do not have any stakes in the LPG market. Yet they have invariably been involved in making false allegations against SSGC and SLL. Quite clearly, these false allegations are being orchestrated by frontmen of those individuals whose objective is to benefit from the situation, create shortages, and create a black market of LPG for their gains.

Being an SOE, SLL has always cooperated in any inquiry conducted by the investigating agencies and provided full support with documentary evidence. The vested interests to slander SLL have even gone to the extent of categorically stating that some of their executives charged with misdemeanors have been suspended. Clearly, this is yet another baseless assertion that was spread to create a negative vibe against SLL and hamper its supply chain and its relationship with the stakeholders.

To reiterate, SLL will continue to improve its supply chain management and delivery system to facilitate a maximum number of customers. In compliance with the directives of the MoE-PD, SLL will keep bringing LPG at reasonable prices and will remain committed to ensuring that there will be no shortage of LPG during Ramazan and Eid.

Ever since its creation more than a decade ago, the SLL management and the team have operated with the highest level of integrity, transparency and dedication while remaining committed to ensuring the supply of quality products at the most competitive price. SLL reserves the right to take legal action against those who have time and again tried to defame the Company and MoE-PD directly and have left no stone unturned in hindering the import of LPG simply for their gains. The Company also requests its Vendors / Customers not to heed frivolous assertions made by vested interests and trust SLL to deliver safe and quality LPG hassle-free to their doorsteps.

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