PDL of 10% on LPG likely
Karachi: The Liquefied Petroleum Gas (LPG) policy is expected to be finalized by the Economic Coordination Committee (ECC) on Tuesday.
According to Alfalah Securities, Limited Imposition of 10% of Petroleum Development Levy (PDL) is likely on LPG produced through gas processing which constitutes 58% of the total LPG production of 1,194 MT. This measure would generate fund for the national exchequer while discourage production through gas processing and is also likely to restrict the extraordinary margins on the sale of this LPG.
The prices of LPG are linked to Saudi Export prices, change on a monthly basis and have risen exorbitantly recently. And with the imposition of additional 10% PDL may let its production and consumption unviable.