Daily Times

After having been accused of serious fraud in import and distribution of liquefied petroleum gas (LPG), Sui Southern Gas Company Limited is now eying bulk supplies from LPG producers in violation of public procurement rules, well placed sources informed ….. Friday.

“It is the next multi-billion rupees scandal waiting to come out in the open,” said a well placed source associated with investigation into alleged role of SSGC and its LPG marketing arm in a scheme to promote monopolistic practices and black marketing of imported LPG.

Sources said that SSGC’s LPG sales arm, SSGC LPG Limited (SLL), have been importing and LPG in highly colourable fashion including through benami agents and distributors who profit by causing loss to the national exchequer. Senior officers of SSGC and SLL are currently subject of inquiries No. 29/2023, 48/2023 and 9/2024 involving serious allegations of manipulation of LPG demand and supply, overinvoicing, forgery of import documents, money laundering, illegal expropriation and blackmarketing of imported LPG.

Known for its skyrocketing loss of gas in the pipeline, contributing to ever-increasing natural gas prices, the company now aims to assume charge of selling LPG. “These developments are particularly disturbing when all national LPG policies refer to LPG as the poor man’s fuel,” said a source in the Petroleum Division when asked to comment on SSGC’s ambition in LPG marketing operations.

SSL transports its LPG using third party bowzers and hires privately owned mixed storage facilities under an arrangement known as hospitality in the industry. This adds to the associated risks the dangers of mixing of substandard gas, manipulation of the stored inventories and unaudited sales. Preliminary inquiries by FIA suggest that in addition to selling imported LPG in bulk to benami companies, the gas company has also engaged in distribution to agents, transporters and purchasers without following any tender process directly at the field. FIA suspects that such practices are adopted to make illegal monies for those responsible within the companies.

All state companies dispose of their LPG though competitive bidding processes or by offering to all companies at OGRA notified prices but SSGC insists that it can only survive in LPG business if they are given authority to buy and sell LPG worth more than Rs. 15 billion every month without following any transparent tender process.