Oil and Gas Regulatory Authority imposes petroleum levy on LPG

KARACHI: The Oil and Gas Regulatory Authority (OGRA) has imposed the controversial petroleum levy at Rs 11,485 per metric ton of liquefied petroleum gas (LPG), inviting severe opposition from the marketing companies.

An OGRA notification has also determined the maximum base stock price of LPG (FoB Saudi Aramco Contract price plus marine freight and import incidentals) at Rs 83,973 per metric ton. Based on the
Saudi Aramco Contract Price for September, local LPG producer prices had been averaging about Rs72,400 metric ton this month.

The authority has also directed the 11 LPG marketing companies to deposit the levy in government treasury as per their respective production with effect from September 21. “In case of non-compliance, strict punitive action would be initiated in accordance with the LPG Rules, 2001,” the notification added.

Following the imposition of levy, LPG prices across Pakistan have been increased by at least 16 percent or by Rs13 per kilogram in order to ensure compliance with the latest directive from the authority.

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