(MENAFN- The Peninsula) The ministry of petroleum and natural resources of Pakistan has worked out a formula for bringing down the price of liquefied petroleum gas. Under the formula, the per kilogram price of the commodity will see a drop by up to Rs108 if it is fixed at RsRs92.50/kg for all parts of the country.
According to a copy of the government paper, the ministry has floated a formula in its summary to the highest economic forum, ECC, to set the price of LPG at Rs92.50/kg for all parts of the country by fixing it at Rs92529/tons. And, in this manner, per kilogram price of LPG can be reduced between Rs50 to Rs108. As a result, domestic cylinder will be available at Rs1092 across the country.
It is pertinent to note here that price of LPG during summer season goes up by up to Rs150/kg and in winter it witnesses new high by shooting up to Rs200/kg, adding woes to the people of remote and hilly areas where the commodity is used as a fuel for cooking and lightening purposes.
About setting the margin of LPG distributors and marketing companies, the ministry has proposed to fix it at Rs626 per cylinder, while Rs307/ cylinder for marketing companies, and Rs159 as GST on the sale of LPG.
Under the proposed LPG Policy 2014, Oil and Gas Regulatory Authority (Ogra) will issue price notification as the price will be regulated, and there will be the imposition of petroleum levy (PL) and Gas Infrastructure Development Cess ((GIDC) on local LPG Producers, while the collected amount under PL and GIDC will be used for giving subsidy on imported LPG so that price of foreign and local LPG can be sold on same price across the country. "Taking cognizance of the issue, MPNR has achieved the issue in its entirely and has concluded that price deregulation policy has failed to achieve intended objectives of availability of the products at affordable prices.
LPG is considered poor's man fuel, yet the same is being priced at over 20 times higher than natural gas for domestic consumers.
Since 2000, the domestic LPG market has been experiencing various challenges including demand supply imbalance, cartelization, litigations and price distortion, "petroleum ministry's summary said.
When contacted spokesman petroleum ministry, confirmed the information and said that in a bid to regulate the price of Liquefied Petroleum Gas (LPG), petroleum ministry has dispatched a summary to ECC for necessary approval to give an end to the policy of deregulation of LPG price, which in accordance to the ministry has become inevitable to make an end to the cartelization causing price hike, fleecing of poor masses, and also to save fast decaying forests of the country.
More, LPG Price Deregulation Policy 2000 has been unfortunately failed in achieving its target. It was launched with a view to promote competition in its business besides making it an investment friendly sector. Also, the petroleum ministry has sought approval to LPG Policy 2014.
He was of the view that one price of LPG will contribute towards minimizing the intensity of ongoing gas crisis of the country.
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