New LPG policy likely to be introduced

ISLAMABAD: The government is likely to introduce a new LPG policy in a bid to slash taxes on imported LPG, marketing and distribution margins, local media reported on Thursday.

The new policy will link locally produced LPG with 90 percent of Saudi Aramco contract price (CP). On January 1, 2019, the LPG Pricing Committee held a meeting and the Petroleum Division finalised proposals based on the committee’s recommendations.

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The sources concerned said that the Petroleum Division is working on the new LPG policy and has further recommended that the state-owned companies must import at least 50 percent of yearly LPG demand deficit and develop storages.

Currently, the Oil and Gas Regulatory Authority (Ogra) notifies LPG prices.