ISLAMABAD

The LPG marketing companies on Monday announced an increase of Rs 8 per kilogram in the price of liquefied petroleum gas (LPG) citing increase in taxes, high international prices and rupee depreciation as the main reason for the hike.
“This is just a small increase and if the government failed to reduce taxes on the import of LPG, the rates will go abnormally high,” warned Secretary LPG Distributors Association of Pakistan, Iftikhar Khokhar while talking to The Nation.
“There are various reasons for the current increase in the prices of LPG, which include hike in the international prices, government levy of more than 40 percent taxes and a sharp devaluation in the value of Pakistani rupee,” he said.
Pakistan’s local production of LPG is 1600 tons per day while consumption is 3000 tons per day and to meet the demand the LPG companies are importing 42000 tons per month. In winter, after the natural gas closure, the demand for LPG will further increase to 6000 tons, he warned.
In July this year, the government had imposed 6 percent income tax on the import of LPG which has further increased the burden of taxes on imported LPG, Khokhar maintained.
“In summer, the indigenous LPG can cater for the local demands, so it does not matter if the government levies taxes on the product or not but in winter the demand touches its peak and we have to import gas. Therefore, the government must grant relaxation in taxes to reduce the price of imported LPG,” he said. In winter, the import of LNG reaches 75 percent of the total local demand, Khokhar said.
Earlier, a press statement issued here stated that with the increase of Rs 8 per kilogram the price of domestic cylinder will jack up by Rs 100 and commercial cylinder by Rs 400 at a time when its demand has started to swell.
“Local prices have increased due to hike of $57 per ton of LPG in international market, going up from $363 to $420 per ton,” Irfan Khokhar, chairman of LPG distributors association Pakistan said.
He said government had to play its part and arrest the rising trend as the prices of the commodity which was mostly consumed by the poor people were likely to go up further in coming days.
As result of new prices, which had taken effect immediately, Khokhar said the price of LPG in Karachi would be Rs 85 per kg with domestic cylinder at Rs970. In Lahore and Peshawar the price of LPG has been raised to Rs 90 per kg with domestic cylinder at Rs 1030 while in AJK, Rawalpindi and Islamabad LPG would available at Rs100 per kg with domestic cylinder at Rs 1150.
Secretary LPG Distributors Association has demanded of the government to go away with 17 percent GST and 6 percent income tax on the LPG, to ensure the cheap rates of the gas during winter.