Local vs imported: LPG association demands cut in producer prices

Published: February 15, 2015
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Price: Rs80,000 per tonne, is the current price of locally produced LPG, while imported LPG is priced at Rs68,000-69,000. PHOTO: ABID NAWAZ/EXPRESS

Price: Rs80,000 per tonne, is the current price of locally produced LPG, while imported LPG is priced at Rs68,000-69,000. PHOTO: ABID NAWAZ/EXPRESS

LAHORE: The LPG Association of Pakistan has demanded that the government reduce producer price of locally produced LPG as importers have flooded the market with cheap and substandard gas.

The association requested Finance Minister Ishaq Dar to instruct the FBR, whose tax collection has gone down, to analyse the ground realities following a drop in collection of duties and taxes. Local producer sales have been adversely affected, causing losses to the LPG marketing companies that pay substantial revenue to the national exchequer and provide livelihood to millions of people.

LPGAP Chairman Farooq Iftikhar, in a statement, said that an immediate cut in prices of locally produced LPG would enable the government to generate more revenue besides saving foreign exchange.

He said that it was the government’s duty to lower prices in line with the understanding arrived at between the Ministry of Petroleum and Natural Resources and the LPG marketing companies, thus meeting the government’s objective of providing relief to the masses.

The chairman said that locally produced LPG is currently priced at Rs80,000 per ton while imported LPG is supplied at Rs68,000-69,000.

“Around 20-21% per ton is collected in taxes including sales tax, withholding tax and income tax, while the imported LPG escapes taxes since most of the commodity is supplied to the middleman that maintains no accounts.”

As a result, imported LPG is sold at cheaper rates, hindering sales of the local product.

“We request the government to urgently fill vacant positions of Ogra members that have been lying vacant for a long time as their absence has been hindering the issuance of licences to the marketing companies for many months.”

Published in The Express Tribune, February 15th, 2015.

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Reader Comments (1)

  • Woz Ahmed
    Feb 15, 2015 - 8:20AM

    Substandard gas ?

    Is there any actual proof ?

    Why are we so easily misled and abused ?Recommend

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