Challenge for new LPG?Policy

OUR STAFF REPORTER LAHORE The LPG marketing companies and distributors while terming the government decision of imposing petroleum levy on locally produced liquefied gas as unjustified have hinted to challenge the LPG Policy 2011 in the courts. LPG Association of Pakistan and All Pakistan LPG Distributors office-bearers at a media briefing on Saturday reiterated that imposition of petroleum levy on locally produced LPG would destroy the local industry. Earlier, both the bodies held a meeting to discuss their future strategy. It was announced: LPG Association of Pakistan (LPGAP) may challenge the new LPG Production and Distribution Policy 2011 in court unless the Ministry of Petroleum and Natural Resources holds meaningful dialogue with industry stakeholders and re-examines some of the controversial new provisions. The interesting point is that the marketing companies since the years have been linking the monthly price fluctuation of locally produced LPG in accordance with the international market despite having no import bills of the liquefied gas. The distributors, on the other side, always criticised the 'dual standard of the marketing companies on their price formula. For the years, it had remained a common practice that on every time the companies linked the price with international market, the distributors criticised them. However, since the government has imposed the petroleum levy on LPG, both the bodies are united. On Friday, the marketing companies and distributors via press conference appealed the federal government to withdraw the new policy. On Saturday, they held a meeting and decided to go to the court against the imposition of levy on locally produced gas unless the government inclined to address their issue. The LPG associations announced that after the imposition of the levy, the price of domestic cylinder would be increased by Rs 150 while the price of commercial cylinder would be increased by Rs 575.They unanimously passed resolution against the LPG Policy 2011 and termed it against national interest, against domestic industry and against the consumers. According to them, the decision of importing LPG would also put additional strain on the foreign exchange reserves of the country. They said the government wanted to monopolise the LPG business by making SSGC and SNGPL as LPG companies.

ePaper - Nawaiwaqt