The price of imported liquefied petroleum gas (LPG) has surged by Rs 12,000 to hit record high at Rs 95,000 per tons as Saudi Aramco contract price (CP) climbed by 93 dollars to touch 788 dollars in the international market. This was stated by chairman of FPCCI Standing Committee on LPG and All Pakistan LPG Distributors Association Hadi Khan in a statement here on Monday.
He said that though the imported price of LPG had registered the unprecedented rise in the local market, the importers did not raise its retail prices. Hadi urged the government to ensure that local producers should not raise the price of locally produced LPG in proportion with Saudi Aramco. He also urged the government to remove 17 percent sales tax on the import of LPG to ensure that its prices are not enhanced and in the country.
The local retail prices of LPG would be increased to unprecedented level, discouraging its general consumers to quite its use for good, he noted. Hadi pointed out the consumption of LPG in the winter had been enhanced from 1900 tons to 2000 tons per day whereas local producers were still producing 1,400 to 1,500 tons per day, creating a hug gap of 500 ton between the demand and supply. There was an urgent need to discourage the opportunity created for profiteering in LPG business. The withdrawal of sales tax on imported LPG was must to reduce the difference between LPG's demand and supply and to facilitate its import, he observed.
Hadi said that a total of 48,152 tons of LPG has been imported between the first 10 months of current year starting from January to October 31. This was the reason why the LPG prices were still stable in the country, he added.-PR