): With the imposition of petroleum development levy (PDL) on LPG its end-consumer prices are set to increase by up to Rs 3 per kg. A spokesman of the LPG Association of Pakistan (LPGAP), a grouping of all LPG marketing companies, Fasih Ahmed, said here on Monday. "We are disappointed by Government of Pakistan's decision to impose additional tax burden on the LPG industry, which is still recovering from the last government's reckless import parity pricing policy". The LPGAP spokesman said that this levy would contribute towards making LPG uncompetitive, and would unnecessarily burden the consumers without much benefit to the government. "Imposition of the PDL and a further impending increase in LPG producer prices threatens to dry up demand for LPG," he said. "there is little justification for increasing the price of a locally produced product used by the poorest quarters of society," he said, adding that an estimated 95 percent of LPG available in Pakistan is locally produced while the remainder is imported during winter to cater for additional domestic sector demand. It may be mentioned that the government has decided to tack on a 5 percent surcharge on LPG producers in addition to federal excise duty and the general sales tax. The move comes despite opposition from the Ministry of Petroleum & Natural Resources. In a recent summary to the Economic Co-ordination Committee (ECC) of the Cabinet, the Ministry had said that it "does not support PDL/Levy" on LPG because it is not yet formally a transport fuel and because it will lead to higher end-consumer prices. Copyright Business Recorder, 2008