Special Report
ISLAMABAD: Federal cabinet, through circulation of summary, has approved an exemption for SSGC-LPG (Pvt.) Limited (SLL) on purchase of Liquefied Petroleum Gas (LPG) spot cargoes from the international market, it was learnt on Thursday.
As per details, under the exemption, SLL will be allowed to procure approximately 20,000 Metric Tons of LPG per month from international suppliers, totaling four cargoes each month, from April 2023 to September 2023.
Earlier, Petroleum Division requested the Public Procurement Regulatory Authority (PPRA) to grant exemption to SSGC-LPG (Pvt.) Limited (SLL) from Rules 35 & 40 of the Public Procurement Rules, 2004 for the import of LPG Spot Cargoes from April, 2023 to March 2024 (approximately 20,000 Metric Ton LPG i-e four cargoes per month)
PPRA Board, in its 70th meeting held on 07-04-2023, recommended exemption to the SSGC-LPG (Pvt.) Limited (SLL). The decision of the Board is as under:
“The Board decided to recommend to the federal government under Section 21 of PPRA Ordinance, 2002 for grant of exemption to SLL from applicability of Rules 35 and 40 of Public Procurement Rules, 2004, for the procurement of LPG spot cargoes from April 2023 to September, 2023 for approximately 20,000 MT per month to the extent of relaxing the period between the announcement of evaluation report and award of contract to the successful bidder, subject to the condition that fair and responsible opportunity shall be provided to ensure the healthy competition amongst the potential bidders and to ensure redressal of grievance of the aggrieved bidders, if any. Moreover, the procuring agency shall ensure publication for the invitation to bid in widely circulated Urdu and English newspapers.
The Board also decided to recommend to the federal government under Section 21 of PPRA Ordinance, 2002 for grant of exemption to SLL from applicability of Rule 40 Public Procurement Rule, 2004 for the procurement of LPG spot cargoes from April, 2023 to September 2023 for approximately 20,000 MT per month to the extent of negotiating the prices with the Most Advantageous Bidder (s) to get the LPG in accordance with the prices prevailing in the market to ensure value for money.
Section 21 of the PPRA Ordinance, 2002 stipulates that: “The Authority may, for reason to be recorded in writing, recommend to the federal government that the procurement of an object or class of objects in the national interest be exempted from the operation of this Ordinance or any rule or regulation made there under or any other law regulating public procurement and the federal government on such recommendations shall exempt the aforesaid objects or class of objects from the operation of the laws and rules and regulations made thereunder”.
The PPRA Board recommended the exemption to the federal government under Section 21 of the PPRA Ordinance, 2002, citing the national interest in overcoming gas shortages. The recommendation also emphasizes the need for publication of bid invitations in widely circulated Urdu and English newspapers, ensuring transparency and equal opportunity for all bidders.
In September 2022, petroleum division had given a task to both the sui companies i-e SSGC (through its subsidiary SLL) and SNGPL to import additional LPG during winter season from November 2022 to March 2023 to overcome the severe gas shortages in the country.
SLL in response took the lead and imported 67,771 MT LPG during last winter season. The regular LPG supplies to the local market not only helped in avoiding the artificial shortage of the product but also maintained the LPG prices well within OGRA announced prices, said SSGC LPG, in a letter dated March 27, 2023 to Director General, Liquified Gases, Ministry of Energy.
It is pertinent to mention that this latest exemption for SSGC-LPG aims to continue the steady supply of LPG, addressing the country’s energy needs and promoting stability in pricing.
