Demands of LPG producers go unheeded.

A sub-committee constituted to make recommendations for a new liquefied petroleum gas (LPG) policy has turned down major demands of state-run LPG producers that called for imposing regulatory duty on LPG imports and maintaining advance income tax to end price distortion.

Oil and Gas Development Company (OGDC), Pak Arab Refinery Limited (Parco) and Pakistan Petroleum Limited (PPL) are the state-run companies that are producing LPG.

They said that the government should maintain the prevailing advance income tax on LPG imports as this is an advance tax and is adjustable against final tax liability.

In final draft of the new LPG policy, the sub-committee, formed by the Cabinet Committee on Energy (CCOE), rejected the two proposals and called for removing the advance tax, which would increase price disparity between local and imported LPG.

The sub-body also did not propose imposition of regulatory duty on LPG imports.

In a letter sent to the Petroleum Division secretary and Planning Commission deputy chairman, the state-run companies demanded the inclusion of several proposals in the new LPG policy.

The Planning Commission deputy chairman heads the sub-body on LPG policy. However, they expressed serious reservations about the proposed LPG policy, which was in favour of importers.

They have written several letters to the government, highlighting some concerns, and asked it to address them while finalising the 'Report on Sustainable LPG Supply Chain Policy' in order to ensure sustainability, removal of disparity in the LPG supply chain and a level playing field for the local producers and importers.

They said that regulatory duty should be imposed on...