LAHORE - LPG prices are set to increase by up to Rs 3 per kg with the imposition of the Petroleum Development Levy (PDL) on the product, said the spokesman of LPG Association of Pakistan (LPGAP), a grouping of all LPG marketing companies, here on Monday. "We are disappointed by the Government decision to impose an additional tax burden on the LPG industry, which is still recovering from the last Government's reckless import parity pricing policy," said LPGAP Spokesman Fasih Ahmed. "This levy will contribute towards making LPG uncompetitive and unnecessarily burden consumers without much benefit to the Government of Pakistan," he said. "Imposition of the PDL and a further impending increase in LPG producer prices threatens to dry up demand for LPG," said Ahmed. "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 per cent of LPG available in Pakistan is locally produced while the remainder is imported during winter to cater for additional domestic sector demand. The Government of Pakistan has decided to tack on a 5% 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 Coordination Committee (ECC) of the Federal Cabinet, the Ministry 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. Ahmed said the Government should have instead focussed on increasing local LPG production and facilitating the setting up of LPG Autogas Stations. "Local production can be increased by 50 per cent in less than a year's time and LPG Autogas Stations can reduce Pakistan's dependence on imported fuels," he said.