LPG remains unavailable at government-fixed prices across Pakistan, with consumers continuing to pay significantly higher rates despite enforcement actions against retailers. Meanwhile, the LPG Distributors Association expects a new pricing formula to be implemented next month, potentially setting the price between Rs400 and Rs450 per kilogram.
According to media reports, rising LPG consumption due to changing weather conditions and the ongoing energy crisis has pushed up prices across the country. In cities including Lahore, LPG is being sold at rates considerably higher than those notified by the Oil and Gas Regulatory Authority (OGRA).
Despite raids and enforcement measures against retailers, authorities have failed to ensure the availability of LPG at government-mandated rates. Retailers also claim that the cost of confiscated LPG dispensing pumps is being passed on to consumers through higher prices.
According to OGRA data, only 45 of the country’s 411 registered LPG companies have quotas for locally produced gas, while more than 300 companies purchase LPG from these quota-holding firms for resale. In response, OGRA is reportedly considering abolishing the existing quota system and introducing a bidding-based mechanism.
Speaking to the media, LPG Distributors Association leader Rana Abdul Jabbar said LPG plants, rather than distributors, were responsible for the high prices. He questioned how distributors could sell LPG at OGRA’s notified rates when they were purchasing it from plants at around Rs550 per kilogram.
He also criticised OGRA’s pricing formula, saying that transportation and other costs were calculated using rates from 2016, despite a significant increase in expenses over the past decade. He maintained that selling LPG at the officially notified price was not financially viable under the existing formula.
Rana Abdul Jabbar said the association had submitted a revised pricing schedule to the government. He added that the proposed formula would be implemented after consultations and completion of the required legal procedures. According to him, the new formula could set LPG prices between Rs400 and Rs450 per kilogram from next month. The association also wants the existing monopoly of LPG companies to end to ensure more affordable supplies for consumers.
