Burden: LPG producers absorb impact of hefty levy

LPG sellers withstood an increase in levy, by reducing porifce

ISLAMABAD:

Fearing a strong backlash from the people, state-owned gas producers have made only a small increase in prices of liquefied petroleum gas (LPG) despite imposition of a hefty petroleum levy.

“Just a day after the imposition of petroleum levy, the LPG producers, in a surprising move, first reduced prices by Rs10,000 per ton and later increased them by Rs11,486 per ton, making a net increase of Rs1,486,” said LPG Association of Pakistan spokesman Belal Jabbar.

On January 17, the government imposed petroleum levy of Rs11,486 per ton on local production.

“The impact of the levy has been mitigated,” he said, but despite that prices increased by Rs1,486 per ton or Rs20 per domestic cylinder.

Published in The Express Tribune, January 20^th, 2012.