Govt likely to regulate LPG price within two weeks

News Image

By MG News | September 12, 2017 at 08:52 PM GMT+05:00

0:00

ISLAMABAD: The government is set to impose levy on Liquefied Petroleum Gas (LPG) sector in a bid to collect Rs 2 billion while it is likely to regulate the price of LPG within fifteen days, it was learnt. Sources in LPG sector aware of the development informed that the government is set to regulate the price of LPG within next two weeks. They said the government would collect Rs 2 billion by imposing levy on the LPG Producers with effect to the expected decision. However, final decision in this regard will be taken very soon, said sources.

The sources further said that all office bearers of LPG sector including LPG Producers, LPG Marketing Companies, LPG Association etc has held a meeting with Additional Secretary (Policy) Ministry of Energy (Petroleum Division) on Tuesday to discuss the budget estimates in respect of non-tax revenue receipt for fiscal year 2017-18.

Meeting was Chaired by Mr. Jami ( Acting Secretary Petroleum) in which Mr. Iqbal Z. Ahmed (Chairman JJVL), Mr. Fasi Uddin Ahmed (Director JJVL) & Mr. Farooq Iftikhar (Chairman LPG Association) briefed about local LPG production & problems faced by LPG sector. Officials of LPG and LNG wing attended the meeting. Chairman LPG Distributors Association Pakistan, Irfan Khokar while talking to this scribe has requested the government to make a formula of LPG price while keeping in view local gas price, imported cost, the previous record of LPG Producers cost and international Saudi Aramco Contact Price, to provide a universal base price to all local LPG producers and then introduce 10 % levy tax on that base price only for local producers. He also asked that in future, LPG quota should only be allocated to those LPG marketing companies which will mix at least 50 % imported LPG in their overall sale otherwise local LPG quota should not be allocated. And, price of LPG should only be determined after mixing local quota and imported LPG and this price should be same throughout the country.

Irfan Khokar also requested the government to take action to finish this 5.5 % advance tax on import or implement this advance tax on local production of LPG as well so that price of LPG could be maintained at lower level. Similarly, $32 terminal charges should be reduced to $ 11 according to international rules or terminal should charge $ 5 as service charges on whole cargo and separately allocate rate on as much storage is provided to LPG importers. said Chairman LPG Distributors Association Pakistan, Irfan Khokar. The 5.5 per cent advance tax on LPG import is a major factor in high price of LPG in the country.

According to data present on OGRA website, 502232 MT (million tons) of LPG was consumed in 2014 and out of which only 62117 MT was imported which increased to 245578 MT in 2015 when local producers were not able to fulfill the total demand of 875087 T. In 2016, this demand was higher than before and to fill the demand of 1164706 MT, total 513788 MT of LPG was imported. Even, in 2017’s first five months, 178119 MT have already been imported to fulfill the demand of 461940 MT which will increase with the passage of time as winter is ahead.

Related News

Name Price/Vol %Chg/NChg
KSE100 130,686.66
280.01M
0.26%
342.63
ALLSHR 81,305.25
897.01M
0.35%
281.26
KSE30 39,945.45
114.02M
0.09%
37.19
KMI30 190,698.05
148.61M
0.61%
1163.05
KMIALLSHR 55,074.15
495.43M
0.53%
290.50
BKTi 34,568.40
28.73M
-1.07%
-372.33
OGTi 28,739.35
22.59M
1.57%
443.29
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 110,155.00 110,525.00
110,155.00
-260.00
-0.24%
BRENT CRUDE 68.85 69.14
68.32
-0.26
-0.38%
RICHARDS BAY COAL MONTHLY 97.50 0.00
0.00
-0.75
-0.76%
ROTTERDAM COAL MONTHLY 108.45 109.80
108.45
-0.55
-0.50%
USD RBD PALM OLEIN 998.50 998.50
998.50
0.00
0.00%
CRUDE OIL - WTI 67.13 67.18
67.00
0.13
0.19%
SUGAR #11 WORLD 16.37 16.40
15.44
0.79
5.07%

Chart of the Day


Latest News
July 03, 2025 at 10:04 PM GMT+05:00

SBP reserves rise around to $13bn


July 03, 2025 at 05:39 PM GMT+05:00

Gold price in Pakistan rises Rs800 per tola


July 03, 2025 at 05:17 PM GMT+05:00

Microsoft exits Pakistan after 25 years


July 03, 2025 at 04:43 PM GMT+05:00

Privatisation Commission approves advisors for ZTBL


July 03, 2025 at 04:11 PM GMT+05:00

PSX Closing Bell: Holding Ground



Top 5 things to watch in this week

Pakistan Stock Movers
Name Last Chg/%Chg
Name Last Chg/%Chg