KARACHI: Local liquefied petroleum gas (LPG) producers are overcharging since there are no checks by the Oil and Gas Regulatory Authority (Ogra) and hence local LPG costs Rs8,000-10,000 more per tonne as compared to the prices in the world market.

This was stated by Chairman FPCCI standing committee for LPG and senior vice chairman LPG Distributors Association of Pakistan, Ali Haider during a meeting at the FPCCI office on Friday.

Seeking rationalisation of local producers’ price, he said that some LPG producers have reduced the prices by Rs2,000-4,000 per tonne while Saudi Aramco Contract Price has plunged by $70 per tonne to $330 per tonne in the last one month. He further said that six per cent withholding tax on the import of LPG should be reduced to 3pc.

It was suggested that Ogra should ensure that LPG price must not exceed beyond Saudi Aramco Contract Price.

The committee recommended that Iranian LPG, making its way into Pakistan via sea or land routes, should be physically verified through third party inspections.

The committee suggested that Ogra should revert back to its policy for storage plant inspection after every five years as yearly inspections were not acceptable.

Published in Dawn, September 5th, 2015

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