close
Monday June 17, 2024

LPG policy draft prepared with deregulated pricing

The role of the Petroleum Division shall be limited to policy-making with Ogra having a more effective regulatory role

By Khalid Mustafa
February 28, 2024
LPG cylinders can be seen in this image. — APP/File
LPG cylinders can be seen in this image. — APP/File

ISLAMABAD: The outgoing caretaker regime has prepared a draft of the LPG policy for 2024 recommending deregulation of LPG pricing, a 10-year tax holiday for new LPG production, zero petroleum levy and 5 percent GST instead of 18 percent.

The role of the Petroleum Division shall be limited to policy-making with Ogra having a more effective regulatory role and taking necessary measures in line with this policy and Ogra Ordinance. An appropriate “Appellate Tribunal” shall be established to enable the aggrieved parties to challenge the actions and decisions of the regulator.

“We have pitched the policy before the gas exploration and production companies, FBR, refineries, and private players for their input on the LPG draft policy. The draft having input from the stakeholders will be placed before the CCI,” a senior official of the Energy Ministry told The News. “The Directorate General LPG on Tuesday arranged a session with representatives of Pakistan’s five local refineries which include Parco, NRL, PRL, ARL and Cnergyico Ltd. on LPG policy draft,” the official said. “The refining industry pointed out some contradictory measures proposed in the draft, and in return, they were asked to come up with a combined comment on the draft”.

SIFC has already given the go-ahead to the proposed draft asking for further tuning up of the draft after inclusion of justified input from the stakeholders before placing CCI for approval. “To increase supply of low-cost imported LPG, the draft prepared by the government has suggested zero advance income tax instead of 5.5pc and reducing GST from 10pc to 5 pc which will be gradually tumbled annually 1pc to 0pc). For making State-Owned Enterprises (SOEs) competitive, they will be facilitated for partial exemption from PPRA Rules, 2004.”