In a bid to revolutionize the Liquefied Petroleum Gas (LPG) sector, Jamshoro Joint Venture Limited (JJVL) has advocated for the deregulation of base-stock prices of local and imported LPG in the forthcoming LPG Policy. This move aims to empower market dynamics to dictate pricing, fostering healthy competition and encouraging investment in the sector, according to JJVL.
Under this proposed policy, JJVL proposes granting producers and importers the autonomy to determine prices in accordance with prevailing market conditions. This, they argue, would pave the way for fair competition, a feature that previous LPG policies failed to deliver. Iqbal Z Ahmed, Chairman of JJVL, emphasized the importance of a transparent and investment-friendly policy framework in a letter addressed to the Director General of the LPG Petroleum division.
Highlighting the success of the LPG Deregulation Letter of 2000, which attracted investments surpassing $1 billion, Ahmed lamented the setbacks caused by subsequent policies, such as the LPG Policy of 2006. He urged the government to avoid favoritism and instead focus on crafting a policy conducive to investment across all segments of the industry.
Ahmed proposed various incentives to promote local LPG production, including a 10-year tax holiday from the Commercial Start Date (CSD), zero Petroleum Levy, a maximum GST of 5%, and duty-free import of production equipment. Additionally, he stressed the importance of quality control and import regulations to prevent the influx of substandard LPG into the market, advocating for strict adherence to OGRA Marketing Licenses for LPG importers.
By implementing these measures, JJVL believes the proposed policy can establish a transparent, competitive, and investment-friendly environment in the LPG sector, ultimately benefiting both producers and consumers.
