LAHORE – In a surprising move and just to avoid the strong backlash from the public, the state-owned LPG producers on Thursday announced to decrease the prices of liquefied petroleum gas by Rs10, 000 per ton but later they increased it by Rs11,486.

The LPG Association of Pakistan (LPGAP) claimed the government directed the state owned producers to first announce decrease in prices and then adjust the rates by including the levy.

It had been feared that the liquefied petroleum gas (LPG) would become the most expensive fuel in the country after imposition of petroleum levy on its local production. Resultantly, two days after the imposition of tax, the prices go up by Rs1,248 per ton or Rs20 per kg.

State owned Oil and Gas Development Corporation Limited, Parco and Pakistan Petroleum Limited which together account for 61 per cent of the country’s production had announced a base stock price of Rs79,340 on 1st January in line with the Saudi Aramco Contract Price. On 17th January, the Federal Government imposed a petroleum levy of Rs11,486 per ton on local production.

“Fearing a strong backlash from the public, state owned producers are asked to reduce their price by Rs10,000 per ton and then add the levy amount of Rs11,486 thereby increasing their prices by Rs1,486 per ton,” said the LPGAP spokesman.

“The impact of the levy has been mitigated by this manoeuvring of prices” said Belal Jabbar, the spokesman for LPGAP.