Petroleum Development Levy suspended on LPG – Alfalah Securities Limited
Karachi: The prices of Liquefied Petroleum Gas (LPG) have declined after the suspension of Petroleum Development Levy (PDL) on locally produced LPG by the Lahore High Court.
According to Alfalah Securities, the suspension of Petroleum Development Levy (PDL) on LPG has led JJVL, OGDC and Parco to reduce LPG prices by PKR 11,500/ ton. The Lahore High Court has suspended three clauses of the LPG policy 2011 according to which, the local producers are required to import 20% of their sales while also authorizing the SSGC and SNGP rights to all production and filling units in the country. LPG producers have claimed that the suspended clauses were intended to raise local LPG prices through imposition of a levy while it also forced LPG marketing companies to purchase imported LPG from brokers which were subsidiaries of the SSGC and SNGP.