Distributors of LPG to go on strike on December 9

The LPG distributors have given a strike call for December 9 against recent increase in price of LPG by Rs 10/kg for domestic and commercial cylinders following imposition of regulatory duty and petroleum levy. The Economic Coordination Committee (ECC) of the Cabinet approved the regulatory duty on imported LPG to match the prices with locally produced LPG. The LPG users have to buy the local LPG at imported rates as well due to which poor consumers and rickshaw drivers are suffering at large.
Daily consumption of the LPG in winter increases to 4500MT and imported LPG fills the gap with 2500MT per day. As many as 30 out of 144 LPG marketing companies have local LPG quota, while other 114 depend on the imported LPG. Regulatory duty on LPG import will destroy LPG industry after which per kg LPG price will hike up to Rs 300. The LPG policy of the Petroleum Division to provide LPG users with domestic cylinders at Rs 895 failed miserably.
An official of the Petroleum Division told Business Recorder that all the stakeholders were taken on board prior to notify petroleum levy and regulatory duty on the LPG and they agreed to the decision of the government. Chairman LPG Distributors Association Pakistan, Irfan Khokhar said that consumers will have to pay in shape of LPG consumer price hike of Rs 10/kg after which domestic cylinder price will increase by Rs 100 and commercial cylinder by Rs 400, while more increase is expected in coming days. He said levy tax on locally produced LPG was supposed to end the difference between LPG prices between local and imported LPG resulting into low LPG consumer prices. After implementation of regulatory duty on import of LPG, the LPG users would have to buy locally produced LPG at imported rates as well.