Imposition of PL on local LPG production: decision to be challenged in court

The LPG Association of Pakistan (LPGAP) and All Pakistan LPG Distributors Association have decided to challenge in the court of law the decision to impose petroleum levy of around $150 per metric ton on locally produced LPG after the imposition of new policy from October 31.
This was announced by spokesperson of the LPGAP Bilal Jabbar along with senior vice chairman of All Pakistan Distributors Association Muhammad Ali Haider in a press briefing after the general meeting of LPGAP at a local hotel on Saturday. While rejecting the decision taken by Ministry of Petroleum and Natural Resources to impose levy on the locally produced LPG announced in the Production and Distribution Policy of 2011, they said that after the imposition of this levy the price of domestic cylinder will be increased by Rs 150 while the price of commercial cylinder will be increased by Rs 575.
They appealed to President Asif Ali Zardari, Prime Minister Yousuf Raza Gilani and Minister for Petroleum and Natural Resources Dr Asim Hussain to review the imposition of levy on the LPG in the interest of the local industry and the country. They unanimously passed resolution in the meeting terming the new LPG Policy 2011 as against national interest, against domestic industry, and against Pakistani consumers and citizens. The decision of importing LPG will also put additional strain on the foreign exchange reserves of the country, they added.
They said that the government wants to monopolise the LPG business by making SSGC LPG company and SNGPL LPG company. They said that 85 private companies are operating in the country and they had invested more then one billion dollars in the LPG business. They also said that these companies had distribution networks in the far flung areas of the country like Balochistan adding that is it possible for the state owned companies that they will provide gas to these far flung areas.
While giving a proposal regarding maintaining balance in the prices they said that government should allow LPG producing companies to import twenty five percent of their production to enable them to sell this imported LPG after mixing it with the locally produced LPG this will maintain balance in the prices.
Earlier on Friday LPG Association of Pakistan (LPGAP) and All Pakistan LPG Distributors Association had also addressed a press conference which was addressed by spokespersons of the LPGAP Fasih Ahmed and Bilal Jabbar along with senior vice chairman of All Pakistan Distributors Association Muhammad Ali Haider and Vice chairman of the distributors Ateeque Khan in which they said that new policy does not provide any incentives to local producers to enhance their production rather the policy is import centric and has been done primarily to salvage Progas by making imports compulsory and routing the business through SSGC.
They said that every country in the world provides incentives to the local production while Pakistan will set a precedent where local production is discouraged. Why for example CKD car kits are allowed imports @ say 40 percent whereas in CBU imports the duties are 7 to 10 times higher?. Reason is that the local production creates local employment, pays local taxes and develops the country. Import substitution is no solution. They said that LPGAP or any other relevant stakeholders in the industry were not consulted by the government before announcing the imposition of new LPG policy. It is a normal practice for the government to consult all stakeholders while making a policy.