ISLAMABAD: The Petroleum Division will take up the draft of new LPG Policy 2021 for the approval of the Cabinet in the last week of August.

Sources said that the Oil and Gas Regulatory Authority (OGRA) is finalising recommendations in consultation with all stakeholders and will present the recommendations to the committee constituted under deputy chairman Planning Commission.

This committee has drafted the new LPG Policy and sent it to the OGRA, provincial governments and other relevant stakeholders for their consultation.

The LPG marketing companies submitted several proposals to the relevant ministry that the industry is suffering continuous losses due to the government policies favouring imports over local production of LPG.

In the revised draft, the local prices, which were previously linked with international CP price that is highest benchmark in the world, have now been changed to C&F price that means a further increase of $50 to $80 over and above CP price.

On the other hand, the Petroleum Division has proposed to waive income tax on LPG imports to further facilitate importer recommendations.

The local LPG industry has opposed this move, saying that it is not justified and required as its already adjustable and any further waiver will result in significant reduction of government revenues and also open avenues for tax evasions.

Copyright Business Recorder, 2021