WASIM IQBAL

ISLAMABAD: The newly-constituted 7-member LPG pricing committee met Thursday to discuss the guidelines for Oil and Gas Regulatory Authority (Ogra) for implementation of LPG prices across the country, sources said.

Director General of Liquefied Gases (LGs) Ministry of Energy (Petroleum Division) convened the meeting. The LPG pricing committee will determine the price and the Petroleum Division will intimate the price to Ogra, which, in turn, will notify it.

Sources said under the new guidelines, Ogra will consider producers’ price, marketing and distribution margin, government taxes and levies to be taken into account as basic parameters for computing LPG prices for domestic and commercial consumers, keeping in view locally produced LPG, international prices and local market conditions.

The committee discussed policy guidelines in respect of LPG prices keeping in view the relevant provisions of Petroleum Product (petroleum levy) Ordinance 1961 and the pattern of pricing parameters laid down in Petroleum Product (petroleum levy) Rules 1967. The committee also reviewed draft amendments to be incorporated in Petroleum Product (petroleum levy) Rules 1967 and Pakistan Refining, Blending and Marketing Rules 1971 to give legal cover of fixing the prices including all of its components.

On October 10, Cabinet had approved set up of seven-member LPG pricing committee for issuance of guidelines to Ogra for LPG prices.

Sources said that Managing Directors of Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), PAK Arab Refinery Ltd (PARCO), Pakistan State Oil (PSO) and Sui Southern Gas Company Limited (SSGCL) attended the meeting. Representative of Federal Board of Revenue also attended LPG Pricing Committee.

The Council of Common Interests (CCI) considered the summary submitted by the Ministry of Petroleum and Natural Resources on August 25, 2015 and approved “Liquefied Petroleum Gas Production Policy 2015 in principle.”

In the summary for domestic and commercial sectors, the price of LPG was proposed with effect from date of approval of summary which will be subject to revision by Ministry of Petroleum from time to time to benefit the interest of domestic as well as commercial consumers. The proposed price was the producers’ price including excise duty (Rs 41,000 per MT), marketing or distribution margin (Rs 24000 per MT), consumer price ex-GST (Rs 66,000 per M T), 17 percent GST (Rs 11050 per MT) and final LPG consumer price (Rs 76050 per MT).

Ministry of Petroleum forwarded LPG Policy 2016 approved by the CCI to Ogra for implementation which states inter alia that OGRA will amend the rules and regulations as well as licensing terms of its licensees to give effect to the policy.

Implementation of LPG Policy remained pending for the want of amendments in OGRA LPG Rules 2001. The LPG Rules have now been amended and Ogra has asked to determine and advise the price of indigenous LPG including producer price, margin of marketing and distribution companies and consumer price enabling Ogra to notify and regulate the same accordingly.