PSO inks deal with Petrosin for LPG supply

KARACHI: Pakistan State Oil (PSO) has signed agreement with a Singapore-based company Petrosin to sell liquefied petroleum gas (LPG) from its fuel stations, PSO said on Monday. Petrosin will invest around Rs8 billion to build storage tanks and dispensers at 200 fuel stations of the PSO in the next two years, Irfan Qureshi, PSO Managing Director, told The News.

“This is a big step for the PSO. The CNG business is no longer viable as every time in winter there is a gas shortage,” he said. “We will target to bring diesel-run vehicles to use LPG.” He said it will take some time for manufactures of LPG auto kits to set up businesses. But, he added, once LPG auto stations start operation the industry will prop up itself.

LPG is widely used by auto rickshaws, four-wheel taxis and Suzuki pickups. The entire retail sale to these vehicles is done through decanters, who operate in violation of OGRA regulations.

Irfan said as per the performance guarantee, Petrosin will supply 1,500 to 2,000 tons to the PSO daily. “They have assured us to supply the quantity either from domestic sources or imports.” The PSO will earn a margin of Rs7 per kg on sale of LPG. This margin, which is high compared with sale of other petroleum products, is bound to add to state-run the company’s profitability.